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Traditional Insurers Maintain Relevance Through Innovation

innovation

Traditional Insurers Maintain Relevance Through Innovation

Insurance technology is within the reach of small to mid-size insurance organizations and carriers, but do brokers and agents feel confident using innovative technology?

 

The short answer is yes. Innovative technologies are designed with the user in mind. Adopting new digital platforms no longer requires extensive training or new devices. Most technologies are cloud-based and capable of being accessed through familiar smartphones, tablets and desktops. Since the majority of brokers and agents are already comfortable with their personal devices, integrating secure digital platforms into an organization’s workflow is not only seamless but immediately helpful to agents and clients. Here are a few ways digital platforms maintain a traditional insurer’s relevance within an evolving industry.

Data Collection

 

Modern insurance technology collects data, analyzes data and makes data easily retrievable across silos. As consumers become comfortable with Internet of Things technology, traditional insurers can collect data in real-time and employ telemetrics that lead to accurate risk assessment.

 

Granular data analysis improves targeted marketing, helps to personalize premiums and generates detailed policyholder profiles. All of this information increases risk assessment accuracy. AI technology uses collected data to automate underwriting systems and suggest personalized coverage options. Since all of this takes place behind-the-scenes, agents and clients are able to access or provide information through a user-friendly interface.

Instant Access and Personalized Products

 

Consumers have grown accustomed to instantaneous service. When they file a claim, they want to be able to track its progress. When they need to renew their policy, they want to be reminded or even have it renew automatically. At first, only large insurance companies were able to meet these demands. But as start-ups and software firms continually cater to smaller insurance organizations, these organizations have the opportunity to remain competitive.

 

Innovative tech, when paired with personalized service, gives small organizations an edge. Not only are agents able to develop relationships with policyholders, policyholders are able to choose the time and frequency of personal interaction with agents.

Innovation Attracts Clients and Talent

 

Policyholders are getting younger and so are agents. The same technologies that attract clients to an insurance carrier are similar to the technologies that attract younger agents and industry professionals to seek employment with innovative firms. Youthful agents may become frustrated with the amount of paper filing, faxing and snail-mailing that is required when filing claims and processing policies. Digital transformation speeds the process in a way that makes sense to new agents. This helps traditional insurers retain talent for the long-term, as well as retain youthful policyholders.

 

The insurance industry is driven by consumer behaviors and habits. Staying competitive requires traditional insurers to stay cognizant of the ever-evolving consumer market.

CHSI Technologies