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Is your "Tech Stack" a spreadsheet? Three reasons to invest in Insurtech now



This post is part of a series sponsored by AgentSync.

The insurance industry has been around for thousands of years. But there is no reason why your agency should still operate as if it were 1916! One of the biggest parts of the modern insurance industry is its ability to provide generational opportunities for thousands of families. The downside is that the previous generation technology often comes with the package.

It's hard to imagine any company running on paper files and spreadsheets in 2021, but the insurance industry is notorious for lagging behind when it comes to technology introduction. Chances are high that at least a few people reading this right now feel very called!

We previously wrote about the types of technology that insurance agencies need to prioritize if they want to be attractive to investors or buyers during future M&A activities. Even if it's the last thing you think about selling your agency, there are still great benefits to going digital. Here are three of the best reasons why your agency should invest in insurtech now.

Your competitors are investing in technology

OK, so peer pressure is not always the best reason to do something. But in this case, the fact that some insurance companies quickly outperform the industry in adopting technology has two major consequences:

  • One: Those who do not embrace the technology and use it to their advantage will soon be left behind for those who
  • Two: There is still time to be an early user (s) and stand out from the crowd by using technology to improve your business processes and customer experience.

Now that millennials are the largest age group in the United States, your current and future customer base will not have the patience for slow, manual processes. Your agency's future clients are digital natives who expect a level of accuracy, transparency and control when it comes to their insurance purchases that an old-fashioned agency simply cannot provide.

Millennials apart from, the second largest subgroup of the population (baby boomers ) also become more technically savvy every year. Research from 201

9 shows that 68 percent of the boomers own a smartphone and 11 percent use their smartphone as their primary way to access online. These numbers are undoubtedly higher now, especially as covid-19 forced almost everyone to intensify their technology game.

The point is that almost no one still loves to do things "the old way" if it means slower, less personal and does not work to do from somewhere. If your agency does not use insurtech solutions that give customers the level of service they want, a competitor will definitely do so.

Your workforce longs for better ways of doing things

Just as your potential customers will choose an agency that provides them with a modern experience over one that requires them to re-establish their lives by 1950, your agency staff (including producers and customer service representatives) want access to technology that makes their jobs easier.

Think about how Much time you have producers spend on data that does not actually generate revenue. Think about how much time your customer service representatives (CSR) spend on tasks that do not directly serve customers. And if you are not sure how long it will take, we recommend that you ask them, because we guarantee they will.

The agency does not just lose money on non-selling producers and CSRs that do not focus on customer relationships. , but the employees themselves are frustrated by their lack of productivity when they spend time on everyday tasks.

We know it sounds like a broken record, but the point can not be overemphasized: With the aging insurance workforce and the struggle to attract new talent to the industry, technology plays a key role and acts as a differentiator for the agencies that adopt and embrace it.

Technology can increase your revenue and reduce expenses

Increasing your revenue and reducing your operating costs are some side effects of the first two the reasons, but we thought it deserved its own mention. In addition to helping to increase revenue and reduce spending simply because agency staff work more efficiently and customers renew themselves year after year, investments in technology can directly lead to new insurance business.

For example:

  • Automatic email contact and follow-up takes no extra time from the people you pay and can result in transactions being closed that would otherwise have fallen outside your sales pipeline.
  • Having the ability to quickly bring in licensed agents from different states and know that their credentials are valid means your agency can start making more money when these producers start producing faster.
  • Word-of-mouth referrals play a big role in how most independent agencies find new clients. There are now tools to reach your current customers, ask for referrals and even post them on the internet without any manual effort on the part of your agency. These positive online reviews can lead directly to new business when people decide which agency they want to contact for a quote.

There are undoubtedly many more reasons why your agency should invest in modern technology. From attracting more and better producers to avoiding fines and penalties, using technology for your insurance business will certainly be a solid investment.

Producer licenses and compliance management is an area where investment in technology can have a big impact. Check out a demo to learn how implementing a producer compliance management system can lead to agency growth.

Topics
InsurTech
Tech

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