Major Challenges Facing Insurance Brokers and How to Solve Them
There is constant pressure to innovate and upgrade in any industry. The rise of cybercrime based on financial transactions, mass digitization, artificial intelligence, and machine learning affects business. Years after the pandemic, it is evident that no industry can afford to remain static – not even a traditional, eminent, and stable one like the insurance industry.
Below we discuss some challenges brought about by technology in the insurance industry and brokers can overcome them.
Automation vs Personalization
Using automation and data to improve offerings and customer experience is not new in the insurance industry, but doing it consistently while still giving clients a personalized experience is becoming more challenging. Insurance technology brings the ability to automate your interactions with clients. However, with that comes possible issues with the lack of personalization in messages when using chatbots, generic automated emails, or any computerized interactions with clients.
The current phase of intelligent automation, enabled by AI and machine learning, is automating the decision-making process instead of simply automating repetitive tasks. As a result, underwriting, claims, and other areas of operations are increasingly driven by intelligent automation. Thus, in addition to speeding up processes and reducing costs, insurers will be able to serve their customers better and offer them faster and more targeted insurance products.
Solution: Using tech tools to automate the customer journey can be practical and save time. Keeping pace with client demand for efficiency is essential. Include/follow up automated interactions with a customized experience that feels unique to each client.
Cybersecurity
The digitalization of the world means that cybersecurity threats are on everybody’s minds. For example, it is increasingly dangerous to share personal information online because hacking technology has improved. In addition, brokers might be concerned with the way clients send them information and how sensitive data is stored and managed.
Solution: Ease yourself and clients’ minds by using certified encrypted technology to share and store documents and information with clients. For example, emails are easily hackable, and attachments can carry viruses. So protect yourself and your clients by avoiding sharing information via email and opting for encrypted portals to share sensitive information.
Adapting to New Technologies
New technologies are constantly being created to help people manage their time, grow, and make processes more efficient. So naturally, this increases the need to keep up with new tech and learn how to use it quickly.
Solution: Find a balance between what will genuinely help, how steep the learning curve vs how much of a change it will make. Use technology that is easy to learn and resembles what you already use. Get demos and training for you and your time (you don’t have to figure it out yourself).
Bottom Line
Insurtech and the pandemic have brought new challenges and client expectations. However, technologies that allow advisors and clients to feel more safe sharing and storing information are increasingly prevalent. Further, technologies that combine personalization and cybersecurity, like Finaeo’s highly encrypted Client Portal, allow advisors to create customized, branded and secure experiences for clients. Through this feature, clients get to complete the FNAs you make and benefit from having all documents shared between you pass through a high level of encryption and a rigorous virus check. Lastly, Finaeo’s Marketplace of +1000 products from different carriers, our easy quote and comparison features, and the easy landing page setups have made adapting to new technologies more effortless than ever.
Interested in learning more about how Finaeo can help you digitize and improve your workflow? Leave your contact info below, and we’ll reach out to you!
