There’s no doubt that technological advancements have been reshaping the insurance industry. Forward-looking insurance brokerages will be leveraging this opportunity to create operational efficiencies, be more customer-centric and improve credibility.
Imagine a business flourishing as tasks are completed promptly and works progress smoothly between multiple departments within the company. This is the corporate dream, especially for insurance businesses that have a more complex structure where brokers, claims, accounts and marketing all work together to deliver results.
The fact is, changing the way a company operates is a big task that requires significant effort and teamwork, but for insurance brokerages that make this shift will most likely see remarkable improvements. Below, are some benefits insurance brokerages can gain by leveraging technology:
A simple way for insurance brokerages to leverage technology is investing in software-as-a-service (SaaS) applications, which can be used to assist sales operations, HR administration, finance processing and more. The flexibility offered by these applications will help employees complete their task faster, leaving them with more time to focus on other essential tasks that have to be done manually. When tasks can be completed efficiently, this eliminates the pressures and gives employees more time to polish up their final work to produce higher quality outcomes instead of rushing towards the deadline.
For insurance brokerages that have more mature technology capabilities, a suite of Internet of Things (IoT) technologies can help reduce manual processes in broking and claims. For products like home insurance, IoT building sensors can stream data regarding risk and damage to the broker and replace in-person visits from claims assessors. Further applications of its technologies could prevent insurance losses on roadways, at worksites, and in homes and businesses by allowing brokers to perform dynamic risk assessments using updated data.
Better customer service
Clients now have more complex needs and are more knowledgeable about their choices than ever before. They look for personalised offerings and tailored communications, and on top of that, they want the best rates from every insurer in just a few clicks.
A 2019 Global Consumer Insurance Survey conducted by Ernest & Young (EY) found that only 75% of customers are very satisfied with the current outbound communications from insurers. 38% of customers claim to be advocates, but cancel their policies or switch providers, and 80% of customers are willing to use digital and remote channel options for different tasks and transactions.
The results from the survey show that there is substantial room for improvements when it comes to fulfilling customers’ expectations. Since 80% of customers are willing to try digital platforms, insurance brokerages need to leverage technology and optimise all interactions.
There’s huge potential for artificial intelligence (AI) to handle customer inquiries, claims reports and data analysis. The development of AI in insurance will not only speed up the time it takes for a customer to accept a policy or settle a claim, but can also collect and store historical and behavioural data such as a driving record. This can be used to create more personalised insurance packages automatically.
This development and growth of technology in the industry will positively redefine the role of brokers by broadening their ability to assist the customer. Rather than spending their time searching for pricing options, they can now use their expertise to offer valuable advice and solutions and spend more time building a trusted relationship with the clients.
As advances in AI assist in streamlining repetitive tasks such as information gathering and documentation review, insurance brokerages can redirect their operational spending towards relationship-building activities. They can spend more on networking events to build a relationship with Underwriters or hold informational seminars to help educate and interact with prospective clients. As such, these technologies can help digital-first insurance brokerages add significant value to their services and increase their credibility within the insurance market.
To embrace this technological transformation, insurance brokerages should form interdisciplinary teams by integrating technology with operations, and use digital tools that help improve customer experience. In addition, insurance brokerages should provide sufficient training for employees regarding the efficient use of new technology and build capabilities to work regularly with external technology service providers. It is also essential to make sure the organisational cultures encourage and nurture experimentation for the business to embrace the changes.
If you’re ready to embrace this technological change, why not start by digitalising the management of your accounts using FlexiFund It’s premium funding software. Our software help keeps track of payments and overdue invoices, and it’s so simple that you can operate it in-house without needing an accountant’s brain. Not only will a premium funding software save you time and money that can be spent on relationship building, but you can also add more value to your service by offering clients an option to pay by instalments. This can help some clients with their cash flow management and is a win-win situation for both you and your clients.
If you’re interested in using a premium funding software, our team at FlexiFund It can give you an introduction to the setup and procedures and advise you on how to make most of the software in your insurance business. Get in touch with the team to learn more about FlexiFund It’s premium funding software.