“Insurtech” describes companies that use technology to disrupt the insurance industry. Customers have expressed dissatisfaction with the traditional insurance model’s slow, cumbersome processes. People prefer buying their life insurance online rather than filling out paperwork. As a result, insurtech startups have developed products to meet clients’ digital expectations.
The benefit of insurtech for carriers
The most significant benefit to carriers is that insurtech allows them to gather the data to create more targeted and needed products. Using these tools also gives carriers a deeper understanding of how brokers view their products and what they need from them.
Data infrastructure platform
Data gathering and analytics will lead to a better understanding of clients, and brokers’ needs. It can also create more data-based decision-making. The benefit here goes both ways: providing more personalized services and products and creating that white-glove experience for clients.
More personalized products and services
- Create products and services clients need. Predicting which clients need what with a data-based strategy will allow carriers to spend less time and resources perfecting their products and services.
- Carriers can use communication tech to communicate better and reach out to clients and brokers.
- They can entice brokers to work with them with a better line of products and platforms that are easy to use and technology forward.
By using insurtech marketplaces, brokers and agents can provide their clients with bindable, online commercial insurance quotes. With our white-label solution, customers can compare quotes across multiple insurance companies without waiting days for quotes from multiple carriers or being restricted to a single quote.
Brokers and IMOs benefit from better products and services to sell. With carriers being more aware of client and broker needs, they create more products and provide services that make the brokers’ and IMOs’ jobs easier. As a result, brokers and IMOs get better products to sell and are equipped with better insight into who the products would work for.
Data-based selling and marketing strategies. Brokers and IMOs also benefit from data infrastructure not to create products but to make data-based marketing strategies and cross-sell and up-sell based on specific client insight.
Meet clients’ expectations of convenience. With insurtech, brokers and IMOs create multichannel communication with clients by allowing them multiple ways to reach them and providing 24/7 customer support even if working in small teams.
Some insurtech tools significantly decrease the prospect-to-policy process while being straightforward to learn and incorporate. For example, the right tech tools, like the Finaeo Client Portal or DocuSign, can benefit brokers and IMOs greatly by creating a smoother customer experience that is more convenient for clients decreasing the chances of them not completing the process.
Benefit from more efficiency. Spending less time on admin work and selling more accurately with data while meeting customer expectations will lead to more efficiency and a higher ROI.
The benefit of insurtech for clients
If earnings are the primary drive behind incorporating insurtech for carriers, brokers, and IMOs, it is because we know that clients appreciate shopping experiences that are convenient, transparent, and efficient.
Customers don’t want to take the time to find the best insurance policy. Instead, they want to be offered the most relevant policy that meets their needs. Thus, brokers and carriers partner with insurtech companies to optimize the amount of potential visibility with this new phase of the market: Digitization.
A more convenient client experience
Communication. By incorporating multiple ways to digitally connect with clients (such as Zoom, phone, text, and social media), brokers can make communication more effortless. Further, adding customer service tech tools like chatbots can allow clients to reach out for help 24/7 straight from your website or landing page.
Sharing and filling out documents and FNAs. Encrypted client portals allow clients to digitally complete FNAs and share and view documents in one location without worrying about viruses.
Landing pages and quoting widgets. Clients don’t have to call brokers to determine your offer and get a quote. Instead, they can simply go to your website and get a quote themselves on their own time. As a result, clients have access to your business 24/7, thus allowing you to create new clients while sleeping.
A more efficient shopper journey. Clients can get through the process with less effort, allowing the prospect-to-policy process to go even faster. And as we know, a convoluted process is often a significant stressor for prospects. Many insurance shoppers see the lengthy and complex process of getting insured as the main pain point for not getting insurance.
According to a LIMRA study, 45% of millennials said they are more likely to buy life insurance due to COVID-19.
Transparency and security. One significant pain point for clients is document sharing and cybersecurity. Clients being able to see the notes from your conversations and upload documents in an encrypted portal will allow them to feel safer sharing documents and being able to delete them once they are no longer needed.
Insurtech is causing significant disruption in the insurance industry, but only a few companies are placing it at the core of their strategies. For example, the Finaeo Marketplace allows carriers to distribute their products conveniently. Brokers can make quotes, comparison reports and jumpstart applications to different carriers in one location, creating a smoother experience for clients. Hence, the carriers, brokers, and IMOs who embrace technology in their business practices have a unique advantage in standing out from the competition and meeting clients’ digital expectations.