The importance of insurance agents embracing technology to enhance customer experience

About 420,000 agents worked in the insurance sector in the United States alone in 2021. Over most of the insurance industry’s development, this profession was intrinsically related to the essence of what insurance was all about.

Insurance agents now worry that they could soon be completely replaced by automated systems as the growing insurtech cluster and related firms strive to optimize efficiency and increase automation wherever the market permits.

Agents do not have to suffer because of an industry that is unavoidably evolving.

As dependable individuals who are prepared to intervene when their clients most need it, insurance brokers provide an invaluable human touch. But they also need to be ready to accept the very automation and technology that pose a danger to them and learn how to make the most of these resources to enhance their productivity.

Establishing confidence

For customers, insurance brokers can still be quite important. Agents provide policyholders with a physical point of contact, easing the pressure of interpreting complex, perplexing policies, and providing the reassurance of a personal relationship.

People who connect with their insurance policies are frequently experiencing a crisis, therefore it is doubtful that they are in the right frame of mind to deal with chatbots or automated phone systems. Human interaction is still fascinating even as the justification for automation or self-service digital experiences becomes stronger. Even when there is a delay, almost 60% of customers still choose chatting with a live person over a chatbot.

When it comes to building trusting relationships with clients and policyholders, human agents’ empathy and humanity continue to be significant advantages. This is a business requirement that technology just cannot match.

Adaptation essential for agents

Insurance agents, however, cannot be saved by empathy alone. Today’s productivity and information flow are changing quickly, even while nothing has altered in terms of phone etiquette or the skill of explaining policies to clients. To stay up, agents need to be ready.

The ecosystem’s early adaptation and investment in the future by leveraging technology to improve process efficiency across the value chain and accelerate overall growth is encouraging.

While human touch is still important, 41% of policyholders said they would drop a supplier who doesn’t have enough digital capabilities. This means that agents who implement digital technology will have a difficult time keeping consumers. The fact that agencies with high technological adoption rates grew on average by almost 60% more than those with low adoption rates is therefore not surprising.

There is a negative aspect, though. Because legacy insurers still set the standard for much of the sector, insurtechs and other disruptors in it must accept that these companies are unlikely to completely transform their business operations. Although new entrants in the insurance industry must integrate innovation along established paths, the insurance ecosystem still significantly depends on agents for success, just as legacy firms must adjust to new modes of operation.

Discovering the ideal tech solution

It is a foolish endeavor to adopt new tech tools merely to stay ahead of the curve. Insurance agents, however, must choose their technologies carefully and with purpose. Is the goal to attract new clients? Getting in touch with those who already exist? Agents must determine their target market, evaluate their needs, then implement technology that meets those demands.

Start by considering the preferred interaction methods that potential customers prefer, such as phone calls, mobile apps, or websites. Along the policyholder journey, there are a plethora of features and tools to consider, ranging from video conferencing capabilities to online pricing solutions that streamline the onboarding process and more.

Agents may target high-quality leads and address lingering issues before they become unmanageable with the help of other helpful tools like smart data analytics. In addition to being exceptionally good at assessing consumer risk and creating highly customized products, data analytics may even identify fraud by identifying minute differences that the human eye might miss.

Molding tomorrow’s landscape

For professionals of all stripes, the timeless advice to “Change or go home” is crucial in a quickly changing environment. In fact, agents could prevent replacement.

Today’s insurance agents will not only assure their future in the business, but they will also be able to shape it by utilizing the enduring need for human connection and a personal touch in conjunction with the adoption of technology and digital methods to maximize efficiency and effectiveness.

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