Insurtech, the phenomenon that followed the digital revolution, is the influx of technology into the insurance industry. Brought on by tech-based agencies and start-ups, insurtech brings a host of benefits for both agencies and customers. Though the thought of implementing new technology may be daunting, the benefits far outweigh the challenges.
Why You Need to Invest in Insurtech
From 2017 to 2018, investments in insurtech doubled, according to FinTech Global. Those investing saw the need: according to McKinsey, more than 80% of consumers use a digital channel at some point in the buying process. Imagine leaving 80% of your potential business on the table! Failure to invest in insurtech is doing just that.
Insurtech helps agencies better target prospect and customer needs and makes a complex industry easier for consumers to understand. Plus, it streamlines operations, allowing agencies to do more business and customers to get their needs met faster.
Get more essential industry data in our post on “Need to Know Stats on Insurance Agency Marketing”
The Top Five Tools Your Agency Needs
Insurtech has evolved over the years, and there are many up-and-coming tools you need to add to your agency toolbelt. The top five include:
1. Client portals
Close to 90% of U.S. consumers expect businesses to have a self-service online portal. Self-service portals empower customers to meet their needs and get to know your agency better in the process. It’s available 24/7 to answer routine “FAQ” concerns and can free up CSRs to spend more time on problems that require a human touch.
2. Connected Systems/IoT
IoT, or the “internet of things,” refers to how the internet has connected systems in businesses, homes, cars, and more. Vxchnge predicted 20.4 billion devices would connect to the internet of things by 2020.
When it comes to insurance, these connections are between your systems – email, accounting, CRMs, marketing automation, texting – and how they integrated with each other. Integrated systems help mitigate E&O and make things move faster when it comes to policy and claims processing, among other procedures.
Diver deeper into integrated texting and how it can improve customer service and boost client retention
3. Agency-branded mobile app
Almost everyone has a smartphone in their pocket these days. And practically every B2C business has an app. According to J.D. Power’s 2019 Insurance Digital Experience Survey, almost 75% of all insurance companies evaluated offered a mobile app. You don’t want to be part of that remaining 25%! Mobile apps provide immediate self-service and a convenient way to capture timely information during an accident, or when you need to get in touch with customers quickly.
Find out more about how a mobile app is a must-have for your independent agency
4. Data and A.I.
Data partnered with A.I. improve the underwriting process with real-time analysis of rates, discounts, and risk factors. New tech can now translate big numbers rapidly, providing a targeted, granular focus for pricing estimates. Agencies can zero-in at a community level to offer the best prices.
Do you have the right prospecting tech to retain and gain clients? Find out here
5. Cyber security
Insurtech helps agencies process more business, faster, but it also opens up vulnerabilities through its interconnectedness. According to the Clark School at the University of Maryland, a cyber-attack occurs every 39 seconds. And 43% of those attacks are on small businesses like local insurance agencies. To reap the benefits without being exposed to the risks, agencies need to invest in infrastructure and training to keep customer data safe.
Reap all the Benefits of Insurtech with Partner Platform and SIS
At SIS, we’re ahead of the game in insurtech with partners like Agents Council for Technology (ACT) and the ACORD User Group Information Exchange (AUGIE) to stay on top of the latest tech and how it can benefit our Partner Platform agencies.
And, we’re on top of security with state-of-the-art technology to house and protect customer data. Our facilities have geographic redundancy and data encryption, and meet all government data security standards.
We have a mission to support the independent agency, and that’s what Partner Platform is designed to do. Hear from our clients, connect with our community, and request a demo to find out more. Get in touch at [email protected] or 800.747.7005, Option 6.