It may be hard to believe, but we’re nearing the halfway mark in 2018. It’s been a year of unprecedented technological advancement, helping the industry be more efficient and more cautious. Though these insurance industry technology advancements bring a host of benefits, they are also tied to unknown risks.
Tech and its Effects on the Industry
First, let’s take a look at how new tech impacts the industry and your agency. Deloitte covered some of the 2018 tech trends in their 2018 Insurance Outlook at the start of the year. Three major trends included:
- Digitizing underwriting
Underwriting is going virtual to remove barriers to purchase. According to Deloitte, consumers’ probability of purchase jumps from 70 to 90 percent as the application and underwriting process get closer. Having both online gets them as close as possible, increasing sales and improving customer satisfaction with the process.
See how you can leverage your website to increase purchase probability for your customer
- Advancing vehicle technology
As our phones get smarter, so do our cars. 360-degree cameras, adaptive cruise control, Automatic Emergency Braking, and lane departure warnings among other advancements make cars safer. But, as car parts get more advanced, so does the cost to repair them. And there are more things to touch and watch with connected music, maps, Bluetooth, and other distracting tech. This double-edged sword means fluctuation in rates and a trend towards usage-based or pay-as-you-go policies.
- Increasing use of smart home devices and IoT
According to Deloitte, “(e)ighty-million smart home devices were delivered globally in 2016, and expectations of a compound annual growth rate of 60 percent could result in over 600 million such devices in use by 2021”. That’s a lot of property chatting about what it’s doing over IoT. This chatter can be leveraged to reevaluate property insurance rates, similar to how vehicle technology has affected auto insurance.
Harness the Benefits and Mitigate Risk
With so much possibility, coupled with risk, out there how can your agency stay relevant and safe? The answer: stay informed and involved. The information you need is already out there; it’s a matter of getting it to your agency. At a minimum, get in the conversation by:
Check out these online resources to follow for all-around industry updates
- Getting involved in local agent groups
- Following key resources online (blogs, podcasts, vlogs)
- Connecting with user groups, like SIS’s Partner XE User Community
- Catching up with your team, hearing what they know and how they see it changing your business
Don’t Go it Alone
When it comes down to it, you can’t keep on top of the risk/rewards of insurance tech on your own. You need a community of support – and the right tools – to better serve your customers and grow your business.
Read about the latest tool added to Partner XE, e-signature client InsureSign
As SIS, we’re here to help you innovate and stay protected. Our Partner XE management system harnesses the benefits of tech with our Client Portal, mobile access, and email integration while keeping you safe through secure architecture and regular security patches. Plus, the conversations and collaboration in our Partner XE agency workgroups give us continual feedback on how to help our partner agencies stay nimble and adapt to the changing climate.
Find out more about SIS and our Partner XE agency management system: contact us at firstname.lastname@example.org or 800.747.7005, Option 6.