3 Ways Technology Advancements Impact Insurance Brokerage Revenues

20 Jul 2017

Profitability Tips, Insurtech

Wouldn’t you like to make more money?  (Of course, you would! Dumb, question, right?)

Yet, today’s brokers and agents are stressed to the max when it comes to sales.

Why?

There are several reasons, really.

First, consumers are a lot smarter these days. It used to be that an individual would talk to their local agent about a policy before buying. Most of the information they would (or could) get about insurance came from the broker. Today… not so much.

Consumers hop on the web and do their own research. They may ask the broker questions and want advice, but they will also rely on the information they can verify through their own research before making a buying decision.

Currently, the average age of an insurance agent is between 55 and 59 years old, according to LIMRA and independent research from McKinsey & Co. These seasoned agents are used to doing business a certain way, which worked for them for most of their career. But, modern consumers no longer buy insurance in the same way that their parents and grandparents used to.

Secondly, younger agents coming into the business expect their employers to give them more flexibility in how they do business and updated marketing strategies. But, insurers and agents alike aren’t ready for that kind of change.

Finally, there is a wave of startups and “disruptors” promising to remake the insurance industry. Google, Amazon, and many others are making plans to get into the insurance business. Independent agents already compete for market share, and this won’t help matters.

Fortunately, there is a solution: Insurance brokerage management technology advancements.

Here are 3 ways this technology can help impact your insurance brokerage revenues:

1. Reinvented Workflow Capabilities

One of the things this technology brings to the table is the benefit of the cloud. End-to-end cloud-based platforms bring all aspects of the business together into one location to allow for 360-degree visibility. This enables management to accurately develop seamless workflows, so brokers and agents can more easily manage leads and new business. From lead capture to conversion and throughout the sales cycle, cloud-based platforms leverage a variety of tracking capabilities.

A good example of this is Novidea’s cloud-based platform. It has helped companies like Howden Broking Group streamline their policy lifecycle management process and expand their business without having to grow their IT department.

2. Accurate Automation

“Automation” is a popular buzzword, but does it live up to the hype?

Sadly, not always.

One problem is accuracy.

Automated doesn’t necessarily mean effective or efficient. What’s needed are processes that are both automated and accurate.

Enter: an automated sales funnels and CRM.

For starters, automation can simplify the quoting process, but only if it’s accurate. If brokers have to wade through the web, go to multiple websites, and try to organize or compare quotes on a spreadsheet, they’re bound to make at least one mistake… and that can cost them the sale.

Having a centralized “quote engine” that pulls quotes intelligently saves time and it makes the brokerage look more professional.

Digital policy applications are another technology advancement that agencies are rapidly adopting. The ability to take an application over the Internet means that customers can log on, fill out their own application or do it in a collaborative manner with their broker. No more shuffling papers, losing a signature, or having to fill out the prospects address 5 times.

Digital applications reduce redundancy, as duplicate data entry and signature requirements can be condensed into one place — sign once and done.

Finally, there’s the benefit of real-time data. Insurance is an industry traditionally run by paper and ink. Everything is printed, then imaged, then stored in a file cabinet somewhere. Data is never current because it can’t be.

Modern platforms are changing this so that agencies can see information in real-time, make decisions more quickly, and reduce costs while making more money in the process.

3. Data Acquisition

Imagine being able to get deep insights into your book of business. Not just customers’ names and phone numbers or what policies they own. That’s useful information, of course, but you need to see more.

A lot more.

How about being able to see the cost of acquisition or customer profitability tracking? What if you knew what your existing customers were most likely to want to buy next? Are they having a baby? Is their kid turning 18? Are they downsizing for retirement? Did they just open a new business or undergo a huge expansion into a new market?

With new data acquisition technologies, you can get a clearer picture of what your customer wants and where their needs likely are. It reduces sales friction, but also gives you actionable insights so you can be smarter the next time to talk to customers instead of looking like just another salesperson.

Contact Novidea to see how their platform can upgrade your business, today.

insurance-distribution-technology

Posted by Roi Agababa

Roi Agababa is the CEO and co-founder of Novidea since January 2009. Prior to this Mr. Agababa was a senior executive with SRL software group, where he held a number of senior management positions, most notably as the global Vice President for Research and Development and the Chief Technology Officer. Under his leadership, Novidea has been revolutionizing the working patterns of insurance and financial services organizations and has become a leading global provider of top line software to this market.

Comment below to join the conversation:

Subscribe to Our Blog

3 Ways Technology Advancements Impact Insurance Brokerage Revenues

Posted by Roi Agababa on 20 Jul 2017
Roi Agababa

Wouldn’t you like to make more money?  (Of course, you would! Dumb, question, right?)

Yet, today’s brokers and agents are stressed to the max when it comes to sales.

Why?

There are several reasons, really.

First, consumers are a lot smarter these days. It used to be that an individual would talk to their local agent about a policy before buying. Most of the information they would (or could) get about insurance came from the broker. Today… not so much.

Consumers hop on the web and do their own research. They may ask the broker questions and want advice, but they will also rely on the information they can verify through their own research before making a buying decision.

Currently, the average age of an insurance agent is between 55 and 59 years old, according to LIMRA and independent research from McKinsey & Co. These seasoned agents are used to doing business a certain way, which worked for them for most of their career. But, modern consumers no longer buy insurance in the same way that their parents and grandparents used to.

Secondly, younger agents coming into the business expect their employers to give them more flexibility in how they do business and updated marketing strategies. But, insurers and agents alike aren’t ready for that kind of change.

Finally, there is a wave of startups and “disruptors” promising to remake the insurance industry. Google, Amazon, and many others are making plans to get into the insurance business. Independent agents already compete for market share, and this won’t help matters.

Fortunately, there is a solution: Insurance brokerage management technology advancements.

Here are 3 ways this technology can help impact your insurance brokerage revenues:

1. Reinvented Workflow Capabilities

One of the things this technology brings to the table is the benefit of the cloud. End-to-end cloud-based platforms bring all aspects of the business together into one location to allow for 360-degree visibility. This enables management to accurately develop seamless workflows, so brokers and agents can more easily manage leads and new business. From lead capture to conversion and throughout the sales cycle, cloud-based platforms leverage a variety of tracking capabilities.

A good example of this is Novidea’s cloud-based platform. It has helped companies like Howden Broking Group streamline their policy lifecycle management process and expand their business without having to grow their IT department.

2. Accurate Automation

“Automation” is a popular buzzword, but does it live up to the hype?

Sadly, not always.

One problem is accuracy.

Automated doesn’t necessarily mean effective or efficient. What’s needed are processes that are both automated and accurate.

Enter: an automated sales funnels and CRM.

For starters, automation can simplify the quoting process, but only if it’s accurate. If brokers have to wade through the web, go to multiple websites, and try to organize or compare quotes on a spreadsheet, they’re bound to make at least one mistake… and that can cost them the sale.

Having a centralized “quote engine” that pulls quotes intelligently saves time and it makes the brokerage look more professional.

Digital policy applications are another technology advancement that agencies are rapidly adopting. The ability to take an application over the Internet means that customers can log on, fill out their own application or do it in a collaborative manner with their broker. No more shuffling papers, losing a signature, or having to fill out the prospects address 5 times.

Digital applications reduce redundancy, as duplicate data entry and signature requirements can be condensed into one place — sign once and done.

Finally, there’s the benefit of real-time data. Insurance is an industry traditionally run by paper and ink. Everything is printed, then imaged, then stored in a file cabinet somewhere. Data is never current because it can’t be.

Modern platforms are changing this so that agencies can see information in real-time, make decisions more quickly, and reduce costs while making more money in the process.

3. Data Acquisition

Imagine being able to get deep insights into your book of business. Not just customers’ names and phone numbers or what policies they own. That’s useful information, of course, but you need to see more.

A lot more.

How about being able to see the cost of acquisition or customer profitability tracking? What if you knew what your existing customers were most likely to want to buy next? Are they having a baby? Is their kid turning 18? Are they downsizing for retirement? Did they just open a new business or undergo a huge expansion into a new market?

With new data acquisition technologies, you can get a clearer picture of what your customer wants and where their needs likely are. It reduces sales friction, but also gives you actionable insights so you can be smarter the next time to talk to customers instead of looking like just another salesperson.

Contact Novidea to see how their platform can upgrade your business, today.

insurance-distribution-technology

Topics: Profitability Tips, Insurtech