It has been almost a year since life as we know it was altered due to the pandemic known as COVID-19. People and businesses alike have had to find new ways to work, connect, and grow. The insurance industry in particular has seen a dramatic shift in the way carriers, agents, and clients do business.
It’s hard to remember what life was like before COVID-19 let alone think about how to get reacquainted once it is safe to return to “normal.” In truth, life may never feel “normal” again, but many new and wonderful things have come from the changes over the past months.
The insurance industry has made a lot of headway during this time, and there are a lot of trends to watch out for as we transition out of quarantine.
Insurtech Is Standard, Not Optional
Prior to the pandemic, the insurance industry was reluctant to change. However, after years of slow and methodical progress towards a fresh business model, digital business methods were quickly put in place. Insurance agents adopted various tools, including video conferencing, e-applications, e-signatures, and e-delivery, to continue providing service to their clients. Underwriting changed in terms of how carriers secure records and how people receive coverage.
The pandemic has proven that work can be done efficiently at home and that digital solutions such as Zoom and Teams make it possible to communicate online. In fact, digital capabilities make doing work easier and more efficient. According to McKinsey, the finance and insurance sectors have the highest potential to remain remote post-COVID with “three quarters of time spent on activities that can be done remotely without a loss of productivity.” This online arena has already changed the way insurance carriers, agents, and customers interact and will only become more important as technology improves.
Customer Expectations Are Higher than Ever
Many customers prefer buying insurance online, and this increased competition in insurtech has inspired many insurance companies to sell directly to consumers without advisors. Consumers are looking to technology to provide a buying experience similar to those offered by businesses like Amazon, Uber, or Netflix. However, clients are still attracted to the guidance and connection that can only be found with an advisor.
According to Maddock Douglas, post-pandemic consumers want an advisor that will
- act in their best interest;
- provide authenticity and empathy;
- create fast, simple, and meaningful connections; and
- offer transparency and value.
Insurance advisors have an advantage over the major carriers when it comes to building relationships. By adding insurtech solutions to their business model, advisors are able to connect and collaborate with their clients online and learn more about them using insights that only data can offer. Building rapport with clients has more benefits than just sales; clients who regularly communicate with their insurance advisors are 74% more likely to recommend their advisor to others.
Don’t Be Late to the Playing Field
The old methods of selling insurance are not enough to compete with insurtech capabilities. Agents who fail to offer their clients seamless online service will fall behind. While there are many different insurtech solutions to choose from, adopting a variety of products rather than one comprehensive solution will end up providing more confusion than benefit.
One solution that provides robust communication, connectivity, and insights between advisors and their clients is Link by LegacyShield.
Link acts as a secure virtual workplace where
- advisors can easily and securely receive and deliver client information (such as insurance policies);
- clients can upload their important information and share it directly with their advisor or their beneficiaries; and
- advisors receive advanced insights that allow them to identify gaps in coverage, propose solutions, and get to know their clients’ entire network.
Link has even integrated with other insurtech leaders such as SmartOffice, Estate Guru, and Plaid to offer a seamless experience for all stages of the consumer lifecycle.
To learn more about Link, visit our website.