What if your insurance company was constantly losing ground to the competition, and you didn’t know it?
Right now, the biggest trend in the entire industry is the rising prominence of Insurtech. Investing in this technology is an investment in the future of your business. Despite this, many carriers and entrepreneurs have been slow to embrace Insurtech because they don’t fully understand it.
Ready to modernize your own company and take down the competition? Keep reading to discover everything you need to know about insurance technology!
What Is Insurtech?
On the most basic level, Insurtech (short for “insurance technology”) involves using innovative technology in order to streamline the insurance experience. Done right, this provides extra convenience for the consumer while helping carriers save time and money as they strive for maximum efficiency.
While technology has helped power the insurance industry for decades, Insurtech has grown more popular because emerging technology has made it possible to innovate the industry in ways that weren’t previously possible. The advent of technology such as big data, automation, and AI has effectively disrupted the traditional insurance industries and marketplaces, effectively changing how many consumers browse for and buy coverage.
Why Is Insurance Technology So Important?
One of the reasons that Insurtech has become so popular in a short period of time is that it improves the buying and selling of insurance for consumers and carriers alike. Consumers generally appreciate the added convenience, including the ability to browse for and purchase coverage from the comfort of their own homes. Furthermore, these customers appreciate that technology allows them access to more flexible plans that have been personalized to their own needs.
Meanwhile, carriers appreciate Insurtech because it helps reduce operating costs, especially because it’s now easier to conduct business remotely rather than pay the exorbitant costs associated with running a brick-and-mortar operation. Furthermore, technology makes it easier for customers to browse and purchase insurance on their own, and this efficiency can save plenty of time for agents and carriers. Finally, improvements to this technology have made it easier to detect and prevent insurance fraud, which helps carriers further save time and money, all while better engendering customer loyalty.
Insurtech is Already Changing The Marketplace
Obviously, “insurance” is a very big umbrella, and some parts of the industry have been slower to adapt to these technological changes than others. This is especially true of the life insurance marketplace, but that is likely to change when carriers realize the profit potential that is at stake.
Life insurance has always thrived via face-to-face interactions. These were considered especially important when it came to coverage that might last decades. Therefore, life insurance providers have been slower to embrace change, but more carriers are now embracing Insurtech as a way of selling coverage to Millennials.
Right now, more than half of Millennials are not seeking a life insurance policy. That makes this demographic ripe for sales potential, but carriers are starting to realize they must meet this tech-friendly demographic in the middle. By offering better customer support through automation, more life insurance carriers are starting to see an uptick in Millennial business simply because technology offers a better way of engaging with this important demographic.
Using Insurance Technology to Grow Business for Agents and Carriers
It’s easy to see why insurance carriers are so excited about Insurtech: technology is making complex tasks such as claims management, underwriting, and risk management easier by the day, all while saving carriers time and money. However, an increasing number of insurance agents have begun to embrace this technology because they see it as a necessary part of their own growth mindset.
The reason why is quite simple. As we’ve pointed out via NAPA, “new and exciting technology” can be used by enterprising agents “as fodder for agency innovation.” In other words, the average agent doesn’t have to suddenly become an expert at every aspect of Insurtech. Instead, they can try different things to discover what works best for their own needs and the needs of their customers. And a simple willingness to experiment can help them achieve the innovation necessary to succeed over the competition.
Learn More About These Technological Innovations Today!
Now you know a bit more about how insurance technology is changing the game. But do you know how you can stay on top of the next big change?
When you become a member of NAPA, you have access to benefits such as free continuing education courses. Taking these courses helps you maintain your license, all while helping you learn more about this emerging technology and what it means for your industry.
After centuries of cautious management, insurance faces a tech wave threatening the role of human agents. But will AI reshape the industry as expected? Find out in our free whitepaper.
