Insuretech, which is short for insurance technology and can be any type of technology geared toward the insurance industry, can have profound effects on insurance agencies, carriers, wholesalers, and more. And these tools are not just popular; they’re often highly practical and help improve how insurers operate, both for their own benefits and for customers.
“Though approaches may vary, technology will continue to play an essential role in driving better, cheaper, and more transparent insurance experiences,” notes Willis Towers Watson in its Q2 2021 insurtech briefing.
While some insuretech providers sell their own policies, many insurtech vendors partner with existing insurers and help strengthen their businesses. So, this is an area that traditional insurance companies can benefit from embracing. As an insurtech provider ourselves, Talage is naturally excited about what technology can do for the insurance sector. And we think you should be excited too! In this article, we’ll explore five reasons to love insurtech, which include:
- Insuretech Can Help Insurance Agents Go Digital
- Insuretech Can Expand Sales Channels
- Insuretech Can Increase an Insurers’ Efficiency
- Insuretech Can Improve Customer Experience
- Insuretech Can Save Everyone Money
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#1 Insuretech Can Help Insurance Agents Go Digital
Nowadays, becoming a digital insurance agent is a must, and insuretech can help make that possible. Customers want to be able to purchase insurance online, as well as submit claims, handle payments, and more.
With insurtech, an insurance agent can easily add these types of capabilities. Wheelhouse, for example, enables insurance agents to provide bindable quotes online that customers can access on their own, 24/7. The platform can also help as agents expand more into areas like digital marketing. As insurance agents find customers through social media ads, for example, they can then direct these prospects to targeted landing pages easily generated through Wheelhouse.
Other insurtech tools can also help in areas like managing policies online, resolving customer queries through chatbots, and more. By being able to serve customers digitally, insurance agents can do a better job of meeting customer expectations. Meanwhile, insurers gain benefits like being able to handle a higher volume of client interactions, such as if more queries can be answered automatically online, instead of solely relying on insurance customer service reps to answer questions over the phone.
#2 Insuretech Can Expand Sales Channels
Becoming a digital insurance agent with the help of insuretech is about far more than just keeping up with the trends. Having a stronger digital presence can also help insurance agents grow their businesses by expanding their sales channels. Instead of having to meet with clients in-person or over the phone, you can sell policies through multiple channels like:
- Your website
- Email newsletters
- Social media
- Digital ads that lead to a sales landing page
Insuretech can even help agents partner with other types of insurers or business professionals to sell policies in new channels. For example, an insurance agent could partner with an LLC attorney. Suppose a new business owner engages with that LLC attorney online to form a startup. An insurer might use an API to then enable visitors to that LLC attorney’s website to also generate a commercial insurance quote in that same channel (provided that this adheres to relevant regulations for that insurer), rather than making them visit the insurer’s website separately. So, when that new business owner goes to engage with that attorney, they might be able to also buy insurance at the same time.
#3 Insuretech Can Increase an Insurers’ Efficiency
Another reason why we love insuretech is that it can increase an insurer’s efficiency. For example, an insuretech tool that helps make underwriting decisions can shorten the period that potential customers have to wait as insurers assess risk. Insuretech can also be used in areas like claims processing.
From insurtech tools like drones linked with software to assess properties to platforms that help analyze policy documents related to claims, insurance agents can use insuretech tools to get more done in less time. And this usage will likely accelerate in the coming years.
“Insurers will need to invest in connected platform technologies and automation throughout their front, middle and back-office for their digital transformation,” notes a KPMG study.
#4 Insuretech Can Improve Customer Experience
Being able to purchase and engage with insurance agents online through insuretech can also improve customer experience. We love how agents can leverage these tools to deliver a smoother experience for customers, such as using Wheelhouse to automate more of the renewal process.
Plus, since insuretech can increase an insurance agent’s efficiency, they can have more time to spend building relationships with clients. That can help improve customer experience, as you can take the time to dive deep into solving customer issues and providing proactive support.
Insuretech can also improve customer experience as insurers can potentially use these tools to collect and analyze customer data and then personalize interactions.
“While challenges exist convincing customers to share their data, insurers using artificial intelligence (AI)-based tools to augment understanding report significantly better customer satisfaction and retention, saving money at the same time,” says IBM.
#5 Insuretech Can Save Everyone Money
Another reason to love insuretech is that it can be a win-win for all parties in terms of saving money. For insurers, being able to use insuretech tools that help them make more informed underwriting decisions, for example, can help them avoid unnecessary losses from risky underwriting. Some insuretech tools can also improve marketing, such as by identifying the likelihood of renewals. That can help insurance agencies target their marketing spend to move the needle toward more renewals, rather than wasting money going after clients who aren’t likely to budge.
Meanwhile, insurance customers can save money from insuretech too. The efficiencies that insurers realize from insuretech can be passed on to customers, at least in part, in the form of reduced premiums. Plus, if insuretech makes it easier to file claims and receive payment, then customers can receive money that they might have otherwise struggled to get back. That can then create a positive cycle, where the good experience prompts the customer to renew.
The Future Looks Promising for Insuretech
For these reasons and more, we love insuretech and think you should too. Overall, insuretech can help insurance agents and other types of insurers become more digital, expand sales channels and run more efficient, profitable businesses, and customers often love it too.
Going forward, insuretech looks set to become an even larger part of the insurance industry. Not only are many insurers seeing the utility, but investors continue to be drawn to insuretech, which can fuel further advancements.
Globally, insuretech firms raised $7.4 billion in the first half of 2021, which is more than all of the funding for insuretech companies in 2020, finds Willis Towers Watson’s quarterly insuretech report.
As more of these companies emerge and mature, we think the innovation, use cases, and benefits from insuretech will only become more compelling. The future looks promising for insuretech, and insurers would be wise to consider ways that different tools can benefit their businesses.