7 ways to utilize technology and grow your agency
Increasing competition means agents and brokers will need to leverage new ideas and innovation to succeed.
It’s a new era for independent insurance agents and brokers. There are challenges with the continued economic turmoil, rising premium costs and changing customer needs. They’re also facing increased competition. The estimated total number of independent insurance agencies in the U.S. grew from 36,000 in 2020 to more than 40,000 in 2022 — a 9% increase. Many independent insurance agents and brokers have needed to adapt and do things differently to maintain their success. It has been a wake-up call. They can no longer avoid disruption or change.
However, there are also exciting new opportunities and paths for independent insurance agents and brokers to grow their businesses and earn revenue by taking a fresh look at how technology can help.
In the past, technology innovation has often overlooked and underserved independent insurance agents and brokers. New solutions and advancements often focused on insurtechs selling directly to consumers and achieving better efficiencies for providers. Outside of aggregation websites and a few other tools, insurance technologies and new ideas for independent brokers and agents were limited. This is rapidly changing.
Insurtech that works for brokers & agents
Technology and insurtech companies are recognizing the values, needs and demands of independent insurance agents and brokers. Many consumers prefer working with an agent or broker for insurance, despite direct-to-consumer platforms that offer an alternative. Providers still rely on agents and brokers for revenue. This has helped to spur new solutions and programs for agents and brokers.
Modern agent and broker professionals in the industry have accelerated their technology adoption to stay competitive. They are replacing slow, manual and outdated insurance practices that have limited them and are modernizing their offerings to meet customer demands for simplicity and speed. They are also harnessing technology to improve customer relationships, be more efficient in their operations and keep costs under control.
A recent research study by Global Survey Research indicated that 100% of agents surveyed said it was important to quote, bind and deliver a policy online. Respondents said technology for agents is critical at both the front end and the back end, with 31% of agents citing updated technology as their number one pick. They wanted technology to help their businesses by adding efficiencies that allow agents to readily view information about clients, commissions, and policy renewals, and reduce manual entry.
Savvy agents and brokers are also taking advantage of new programs and opportunities. For example, Firefly uses technology and the internet to help independent insurance agents and brokers succeed by connecting them with a wider range of carriers without the burden of production requirements, along with training and other programs.
Independent insurance agents and brokers must understand that nearly all industries today are powered by technology in some way. Here are a few steps to get started:
- Evaluate: Evaluate your current business and product offerings first. Look at what is selling, what your needs are, and where you can improve. It is a standard part of examining and improving business, but it is particularly important with innovation to help you find what fits your needs. Include customer insights as well as how your customers may be using technology as part of your assessment.
- Identify: Look for where better products may exist, if there is anything new you should consider, and how you can make improvements or changes. For example, if an agent or broker sells a lot of homeowners policies, see where you can enhance your homeowners insurance offerings — where you can expand, or do something better, bigger or differently.
- Plan: A concise, clear idea of where and how you’ll adapt to technology or make changes will help you avoid some of the challenges, mistakes and pitfalls common with adopting new innovation. Make sure that it is flexible and open to new learnings. Even with extensive research and effort, there are still learning processes and curves.
- Start Small: A common misconception about technology and new ideas is that they require a big, expensive effort. That is not always true, even with enterprise solutions. Take advantage of free trials, demos, and other ways to test and try technologies before you buy or go further. It will help you see what is best for your needs.
- Experiment: Explore new lines of business. Do things in new ways. For example, if you’re selling homeowners insurance, see if adding a separate schedule for jewelry insurance resonates with your customers or drives sales. Many independent agents and brokers are changing from captive to independent, making it imperative they seek out new opportunities to help grow the business.
- Learn: Tech-driven tools and solutions typically offer data that is or can be distilled down to help you make more informed decisions with real potential for success. Get to know the analytics capabilities and reporting, and other insights of the technologies, programs and platforms you use. Monitor regularly for feedback to make adjustments and fine-tune.
Change is inevitable for insurance industry agents and brokers. It’s clear those who want to be most successful in the market will embrace change by leveraging evolving technologies. The Universe Study indicated that 51% of agencies were seeking more operating efficiencies to help service their customers. Nearly half (47%) of agents and brokers offered more digital solutions to their clients during the pandemic. These trends are likely to remain strong and on the uptick. For agents and brokers, the potential to benefit can be great.
Dustin Lemick is founder and CEO of BriteCo, a leading tech-driven provider of jewelry and watch insurance. Opinions expressed are the author’s.
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