The pandemic has fast-forwarded changes in healthcare and created an Insurtech revolution. Insurtech companies broke records on the largest number of deals and funding in 2020. Insurtech companies raised more than $2.5 billion through 104 deals during the third quarter, according to the Willis Towers Watson report. This equates to a 63% increase in funding from the third quarter to the second quarter.
What is Insurtech?
Insurtech is a common abbreviation for insurance technology. Insurtech is a term used to refer to technology designed to enhance the workflows within insurance firms and the insurance industry as a whole.
Insurers are transforming the way they do business by leveraging technology. Artificial technology has changed how insurers reach their prospects through digital mediums such as smartphones and Big Data.
With today’s technology, people can research, compare the options available, and buy insurance online at the convenience of their computer or phone. Insurtech is influencing industries across the spectrum.
How does Insurtech benefit brokers, carriers, and clients?
Brokers and Firms
By utilizing Insurtech, insurance agents can centralize their workflow, improve their efficiency and generate leads with little time spent on admin tasks so they can spend more time with clients.
With advanced insurtech, you can easily quote and compare products from multiple carriers to meet the needs of virtually any client. With this approach, more people can be helped and you will not need to turn anyone away because they do not qualify.
Landing pages help generate leads by establishing credibility, providing easy access to more information, and creating direct contact with the broker without being pushy. A landing page provides 24-hour access to your business meeting the consumer needs of convenience and transparency.
Some Insurtech companies have CRM capabilities. CRM can save time by auto-filling client information or using a premade FNA template. The option for creating and reusing a personalized FNA template is also available.
Insurtech makes it easier for firms to work in teams and collaborate seamlessly. Businesses can take on more and coordinate group work in less time, allowing them to work more efficiently. Finaeo has a Team feature that provides the ability to share client accounts, as well as, create and manage specific teams.
Now carriers can collect and analyze data on clients much easier in ways that weren’t possible without Insurtech. This leads to more customized products and services for clients to get what they need and want.
For example, tech companies such as Tesla and Alibaba have been investing to help insurance companies with tech that will allow for the ability to share and collect external data sources which will lead to more personalization in carrier products. In the face of digital disruption, it’s not a machine against humans but more like a machine working with humans.
Insurtech helps carriers make their products more easily accessible to brokers and so more easily available to clients. For example, the Finaeo marketplace allows brokers to select from multiple carriers in one location and jump-start applications.
Three words: Convenience, transparency, and efficiency.
Using Insurtech will benefit clients by using this advanced technology to improve their experience. The consumer demands have become undeniable but with the help of insurance technology, these demands are easily met and create the white-glove experience clients are searching for.
Through the different insurance tech tools available to brokers and firms, they will be able to tailor their approach to match the needs of their individual clients. This can be through customized quoting processes, using communication tools that work best with the client, and the ability to compare quotes for the client to ensure the best fit possible to meet all needs.
Clients will be able to connect with brokers via video calls, client portals, and creating custom digital experiences. This brings a sense of convenience, 24-hours 7 days a week, a client can reach out with questions, personal information, and complete forms without the broker’s time.
Although data collection and acceptance of pop-up policies can be daunting, when one understands what the data will be used for, it gives one a sense of ease that it will improve everyone’s experience overall. Carriers are able to create increasingly customized insurance products when they learn more about their clients, so clients can get more of what they need.
How to not get left behind in the Revolution
Take a close look at the entire customer journey and learn about the different tools available to help your agency go from prospect to policy quicker. Evaluate your business with these questions:
- What stages of the customer journey could be more efficient?
- What could be simplified?
- What will make the business more accessible to prospects and more convenient for clients?
- What will make the business more visible to prospects and more convenient for your clients?
Asking questions is the only way to advance your agency and meet client demands. Evaluate your business strategy and see where Insurtech advancements can enhance both the broker experience and client experience.
Bottom Line: Insurance technology is the future
Insurtech benefits the entire industry from carriers to brokers to clients. Insurance technology is not here to replace humans but to help, assist, and complement workflows and benefit ROI. The digital transformation is here to stay. Using the right Insurtech company can make the process from where you are at to where you need to be, seamless.
Finaeo helps carriers increase business opportunities by making their products more accessible to brokers and clients. Brokers get to spend less time on admin work while improving their customer journey. By merely increasing visibility, businesses can boost earning potential, while individuals can benefit from more personalized and convenient services. Everybody wins!