Beyond Insurance Software: Four Trends to Watch

In 10 or 20 years, the insurance industry may be totally unrecognizable by today’s standards.

New technology, new competitors and new distribution channels are combining to disrupt traditional business models, reshape customer expectations, and transform the insurance buying experience.

Savvy insurance professionals know they need to embrace technological innovations, update insurance software and refine workflow and marketing processes to meet the expectations of the new insurance consumer. While the future of the insurance industry isn’t written in stone, innovative insurance professionals will set new standards by … 

  • Redefining business models. More and more, we see industry streamlining, transparency and the elimination of the middleman in insurance transactions. 
  • Revealing new products and services. Today, people buy insurance products. Tomorrow’s consumers don’t want products. They want unique, self-defined experiences. 
  • Changing brand perceptions. Those on the cutting edge are offering faster-paced, more relevant services and products to informed consumers who proactively manage insurance.

Now is the time to draft your insurance survival guide

Below are four insurance industry trends to help your insurance agency keep pace:

  1. Digital engagement: Digital/mobile marketing is where commerce is headed, and it’s a channel that grows wider every day. Embrace the digital age, but don’t neglect more traditional tactics. Use insurance software and technology to keep you and your customers informed and to facilitate frequent, high-engagement interactions.
  2. The age of information: Insurance consumers are more informed today than ever before. By the time you speak with them, they’ve already visited competitor websites, know ballpark pricing and have read articles about buying considerations. The most proactive agents are transforming their insurance agency websites into helpful information sources with blogs, white paper downloads and social media pages. Proactive communication is key. 
  3. New distribution methods: While some carriers are dedicated to traditional captive and independent agency systems, many are exploring new distribution channels. Don’t assume that the distribution method of today is here to stay. Brokers must always be on the lookout for new distribution opportunities and new products to cross-sell. Beware of using insurance software that locks you into one distribution partner or product type. You need flexible insurance agency software that allows you to quickly adapt to the changing marketplace. 
  4. Retail competition: Wholesale clubs, auto makers and retail chains have promoted insurance sales to their customers for years via email, direct mail and in-store brochures. But consider this—according to Bloomberg BusinessWeek, MetLife is now selling term life policies at Walmart stores in South Carolina and Georgia. Now’s the time to implement tried and proven marketing processes, so you’re ready for auto and home insurance competition from big retailers.

The bottom line—if you’re standing still in this changing market and not keeping up with current insurance industry trends, you’re falling behind. Keep your eyes on the innovators and keep moving forward. It’s your best strategy for this year and beyond.

If you’re in the market for cutting edge insurance software, request an Agency Matrix demo today.

Topics: insurance agency software, insurance customer communication, insurance software, insurance trends