4 Ways the Technology Can Aid Your Insurance Agency to Make More Money
The truth about insurance agency technology tools is that many principals view them as a necessary evil at best – and at worst, something they’d rather not deal with. But the reality is, in today’s digital world, embracing new technologies can be an essential part of staying competitive and driving growth for your business.
Recent studies show that fewer than 5 out of 10 agency owners consider increasing their use of technology to be among the most important things to meeting their goals. Likewise, when asked how important it was for agencies to digitally deliver insurance products in order remain competitively successful more than half replied with “Not at all important” or “Moderately Important.” This shows just how far behind some agencies are when it comes to leveraging tech solutions!
In fact, failing to keep up with technological advancements could spell disaster for any independent agent or broker looking stay ahead of competition from large national carriers who have embraced these advances wholeheartedly. These companies are investing heavily into automation platforms which enable them provide faster service while reducing costs – two key factors customers look for when deciding on an insurer! By utilizing modern technologies such as cloud computing and artificial intelligence (AI) agents can reduce manual processing time by nearly 50%, enabling staff members focus on higher-value activities like customer engagement instead tedious paperwork tasks..
In addition , implementing modern technologies also helps insurers increase efficiency by streamlining operations across multiple departments including sales & marketing , underwriting & claims management . The ability offer better services leads improved customer satisfaction ratings resulting greater loyalty retention rates . Finally , using data insights generated through analytics allows brokers create targeted campaigns designed attract new clients furthering expanding business opportunities !
All this proves why its so critical independent agents invest time effort into taking advantage latest industry innovations available help run grow businesses successfully !
The truth is, technology can be a major asset to any insurance agency. It can help streamline mundane tasks, reduce errors and make the entire operation more efficient. But it’s hard to blame agency principals for being hesitant to invest money in new tools when they’re unsure if they’ll really help or concerned that the solution they buy might quickly become obsolete.
Fortunately, there are ways for agents and brokers to mitigate these risks while still getting access to cutting-edge technology solutions that will drive their business forward:
1) Look for vendors who offer flexible contracts – This way you won’t get locked into long-term agreements with providers whose products may become obsolete before your contract ends.
2) Check out open source options – Open source software allows you access without having to pay license fees so your budget isn’t tied up in expensive licenses over time as technologies change or evolve rapidly .
3) Make sure the vendor provides training & support services – A good tech provider should not only provide an easy-to-use interface but also have knowledgeable staff available who understand how best use their product and keep it updated as needed..
4) Investigate subscription models – Subscription models give agencies flexibility by allowing them test out different systems on a month by month basis until one proves itself worthy of investing in further down the line..
In short, don’t let fear stand between you and success! With proper research into potential tech partners (and smart budgeting), there’s no reason why even smaller agencies shouldn’t take advantage of modern tools designed specifically with them mind — regardless of whether those tools are proprietary or open source!
A New Way of Thinking
Agency technology is not a one-size-fits-all solution. The “right” tools for your agency are the ones that solve issues specific to your business, and in doing so, help you make more money.
The best way for an agency owner to consider the possibility of using new technology tools at their agency would be to ask: What are my goals for my agency? What exactly do I want to achieve, and what would my agency look like, once I’ve accomplished that?
The second thing to ponder is, what are the processes that consume the most time, energy, and money at my business, and how much more efficient would my agency be if I were able to fix them?
That’s where the conversation should begin around agency technology and how it can help your business. Technology should always align with your agency’s goals and help you to achieve them; those tools should always work for you, not the other way around.
The right technology solutions will help you sell better, make your agency more productive, and increase its overall value.
How Technology Tools Help Increase Your Revenue
There are many ways in which agency technology solutions can help your agency. Let’s consider four core ways in which it helps your agency make money.
1. Identification of your most valuable clients.
Experienced agency principals are familiar with the Pareto Principle, which states that 80% of your revenue often comes from 20% of your clients. But how many agency principals – and their staff – already know which of their clients are their most valuable, and mindfully direct their energies toward retaining those customers?
That knowledge comes from having a firm grasp on your agency’s data.
Agency principals would do well to seek out a partner equipped with the technology to help them comb through the agency’s client data and provide valuable intel on which of your accounts are the ones most vital to your agency’s revenue, which accounts have been won or lost, which of those policies are coming up for renewal, and whether they’re worth the extra effort in retaining.
Without that intel, agency staffers can often knock themselves out trying to give the same amount of care to a single-policy, low-premium customer than a valued, longtime client.
2. Targeting new business from your current customer base.
When you’ve been provided new, informed insights on your book of business, it unlocks new possibilities for selling.
When sorted properly, your agency’s data clearly shows you:
Which policies your clients are carrying (and which ones they aren’t)
The carriers with which they currently have policies
The percentage of your book of business among multiple carriers
Your compensation from those carriers for the business you have placed with them
Knowing which policies are held by each of your clients reveals new opportunities for cross-selling. Once an insurance agency has a clearer picture of the types of coverage being purchased by a specific client, it also becomes instantly clearer what types of coverage aren’t being carried by that customer.
For example, you can discover that a client might be carrying an auto policy, but not a homeowners or rental policy. A local business with a BOP might lack a workers’ compensation policy, or even cyber coverage. A high-net-worth client may be buying a homeowners or auto policy, but not umbrella coverage. Their policy limits on valuables, for instance, might be found to be insufficient in the time since their original policy was written and need to be updated.
Experienced agents also know that having multiple policies with the same client not only equals more premium, but also better retention.
3. Optimizing your carrier revenue.
Being able to view the full spectrum of where your premium is placed helps informs your process when it comes to marketing risks. Through your own data analysis, you may discover that one of your agency’s go-to markets has been paying you a lower amount of commission than another insurer of equal quality.
Naturally, there are a variety of important factors that determine whether remarketing a client is in their best interest (and yours), including the carrier’s level of service, the quality of its claims management, and competitive pricing. While the needs of the customer come first, knowing which carrier will give you the best return on that client’s premium will come into play when you look to place that business. It’s always best to have a complete view of your service options.
Your data can also show you the full landscape of your carrier relationships. How concentrated is your book? Where is the biggest opportunity to boost your revenue? How are you performing against your growth goals with specific carriers? These are all questions that insurance agents should be able to answer … and the right technology can help them do it.
4. Improved agency efficiency.
Technology is meant to empower you so that your agency can provide the best possible service to your clients. In my conversations with agency owners, they often say that prospecting isn’t their biggest challenge; rather, it’s keeping up with the needs of the clients they’re already trying their best to serve.
Consider your agency’s current processes. Which tasks require the most time and effort for you and your CSRs or office staff? Is it …
Responding to basic inquiries about insurance products or options?
Processing payments or billing?
Filing paperwork for new clients?
Monitoring accounts to flag policy renewals?
Tracking claims for the fiscal year?
Marketing-related tasks, such as manually sending out e-mails to clients or posting on social media?
Once you determine where your business is spending too much time and expending too much effort on certain tasks, you can compile a list of where improvements can be made. Then you’ll begin to develop your vision for what the most efficient version of what your agency will be.
After the appropriate technology solutions are deployed, all the time and energy that’s currently being spent inefficiently can be redirected toward serving your most valued clients.
It’s time to adopt a new mindset when it comes to agency technology. All the tech solutions in the world will never replace the value you deliver as a trusted advisor. Rather, agency tech supports your endeavors, and empowers you to deliver your customers better, more informed insights.
Simply stated, the right insurance agency software tools can help streamline and improve processes, cut down costs, and drive sales. Your agency will benefit from better accessibility, better customer relationships, and stronger retention.
In the end, it’s up to you to decide whether to invest in the tools that will help ensure your agency’s future.