By combining digital tools and advancements with personal interactions, carriers can better engage with agents. Modernizing traditional processes improves links among agents, managing general agents (MGAs), carriers, and policyholders and streamlines workflows, enabling a better experience while saving valuable resources that can be allocated elsewhere, like to customer-facing goals.
Digital connectivity goes beyond portals by integrating data across different, often disparate, systems. Its reach extends beyond simply modernizing workflows to the potential of reshaping the insurance industry. A recent Ivans report explored these topics and trends, including responses from more than 1,400 agents, carriers, MGAs, and technology providers. The report revealed critical next steps for the future of the insurance ecosystem.
The Evolution of Digital Connectivity
Carriers have traditionally relied on portals, phone calls, or in-person meetings to interact with agents. These methods were functional but often resulted in delays and inefficiencies. There were fewer opportunities for information to be relayed instantly, and agents were managing multiple log-ins and learning different systems for each carrier. These workflow challenges created redundancies and increased the risk of errors.
In the future, agents will no longer navigate disparate portals, duplicating efforts and spending more time than needed on administrative tasks. Instead, they will interact with carriers through a centralized hub, or single, integrated platform linking all stakeholders in one user-friendly place. By shifting to this integrated system, agents will have more time to focus on building relationships and servicing policyholders, while the platform seamlessly reduces friction.
Digital rating and appetite usage increase the number of carriers an agent submits applications to, so carriers see more submissions and write new business they could not previously access, thanks to advancements in digital connectivity. Eliminating manual data entry steps and integrating real-time data and synchronous conversations means carriers can process submissions more quickly and with greater accuracy. Carriers can use this strategy to give agents the right tools to succeed, making it a winning model for everyone. Policyholders also benefit when submissions are accurate and priced properly.
Digital connectivity at its simplest means connecting agents and carriers through digital pipelines to transmit information instantly, a transformative upgrade from sending information through the mail or sharing it via large zip drives.
While carriers need to adopt digital tools, the opportunity to modernize also brings challenges.
See also: How Everybody Wins in a Digitized Insurance Market
The Challenges and Opportunities of Digital Connectivity
Carriers and agents may want to adopt digital connectivity tools, but their level of readiness varies. Some larger carriers that have already undergone change management and digital transformations can leverage their existing platforms to improve connectivity. Small and mid-sized carriers, however, may struggle with resources and legacy systems as they plan extensive digital projects.
Carriers may resist changing their portal design to one with more digital connectivity because they fear losing customers who have adapted to the current platform or losing the competitive edge they have built through branding and user experience. However, improving digital connectivity offers built-in advantages as the industry moves toward greater integration, creating opportunities for carriers that embrace the shift toward modernization.
Artificial intelligence (AI) continues to revolutionize digital connectivity and tools. It frees time for carriers as it can review and summarize vast amounts of records and data, automate manual tasks like data entry, and provide insights and next steps for underwriters and adjusters. Document management and ingestion is a prime example where underwriters currently spend hours manually reviewing submissions, but AI could streamline the process to give underwriters more time to spend on complex, high-value tasks.
The Trends Driving the Future of Digital Connectivity
Several trends will shape the future of digital connectivity in insurance:
- Agents will increasingly choose carriers based on digital capabilities. Recent research found that 83% of agents prioritize digital tools when selecting a carrier partner. Those carriers that offer streamlined, tech-forward workflows become the preferred option.
- Carriers want to explore new technologies to help streamline communications, with 85% of carriers agreeing they would invest in technology to receive more complete commercial submissions and minimize the back-and-forth discussions between underwriters and agents.
- Real-time data and quoting solutions help agents place business faster, with fewer declinations. Eighty-seven percent of agents surveyed confirmed they would write more business with carriers if they provided real-time appetite and quoting within their agency management systems.
- AI-powered efficiencies will continue transforming underwriting, claims, and policy administration. Automating routine tasks, enhancing analytics, and predicting risk with AI tools will give agents and carriers time to focus on other strategic initiatives.
- Connectivity tools designed to match excess and surplus (E&S) market growth are essential. The E&S market is growing, with 48% of agents noting increased placements in the market, which means E&S carriers that embrace digital connectivity can meet this growing demand and stay competitive.
- Partnerships are key in advancing digital connectivity. By partnering with established vendors and innovative startups, carriers and agents can access customizable platforms that meet their unique needs.
See also: 3 Steps for Insurers to Keep the Human Touch
Digital Connectivity Transforms the Insurance Ecosystem
Carriers and MGAs that adopt digital tools can improve efficiency while reducing costs and strengthening agent relationships. Agents benefit from the faster workflows and advanced data insights this digital connection brings. The future is clear — digital connectivity empowers all insurance stakeholders. It can transform the insurance industry into a more collaborative, streamlined, innovative ecosystem where connections are prioritized and each player can unlock opportunities in a rapidly changing market.
