While adoption of technology among insurance players has been slower than in other industries today’s insurance consumer is more connected than ever before. It is therefore not surprising that consumers expect their insurance providers to adapt and evolve towards the digital landscape, driven by their digital interactions in other industries.
We see more and more brokers partnering with technology providers and adapting the digital business model in order to build holistic profiles of their customers and to provide unique personalized insurance propositions. Digitalization enables the broker to automate operations achieving higher efficiencies, change the insurance product creation process, but also to understand the unique needs of the insurance customer.
Technology companies – insurtechs are providers of technological expertise, who can push the industry forward with innovative solutions, providing brokers with more time to focus on management and improvement of customer engagement and experience, that in turn leads to increased retention and business growth.
According to Applied Digital Broker 2018 Survey, based on more than 1,300 independent brokers (across the UK, Ireland, U.S., and Canada), brokers that transition to a fully digital business model experience 156% higher revenue per employee (RPE). Further, RPE increases by 37% for brokers that provide clients a mobile app, 18% for brokers that digitally connect with insurer partners and 60% higher for brokers that adopt data analytics solutions.
Partnerships between insurtechs and brokers with P&C offerings can provide various benefits for the broker.
Benefits for insurance Broker:
Insurance brokers are able to distribute their insurance products directly through digital smartphone channel and provide the next generation of personalized insurance products and services to existing customers, as well as attract new ones. A better understanding of customer needs will enhance their engagement and create a better, more personalized customer experience. Consequently, this will ensure differentiation of such brokers in the market and strengthen customer loyalty. Did you know that Amodo Clients achieve up to 32% conversion from download to policy purchase?