The insurance industry has often been criticized for its archaic format and delays in adopting new technology. This needs to change due to consumers' newfound love for and reliance on smart technology, which the pandemic accelerated.
With typical policies only lasting 12 months, there is an annual struggle to retain clients and prevent them from being tempted by cheaper policies and the lure of free goodies. And the generation that is coming along is even harder to please. Institutions rooted in old traditions will need to adapt quickly to remain competitive.
Implementing automation technology into your business is more vital than ever, yet accepting change can be daunting.
Let's look at three ways you know it's time to welcome automation into your agency.
1. Is Manual Data Entry a Nightmare?
The insurance industry is full of paperwork, with most forms filled in through PDFs, via an arduous back-and-forth process. 40% of workers spend a quarter of their week doing manual data entry and collection.
Human error is inevitable when filling out forms by hand. And, with every error, the amount of time for an underwriter to approve a policy gets extended.
Repetitive form filling is a perfect example of a tedious administrative task that can be replaced entirely with the help of automation, while speeding up the process of generating quotes.
2. Want to Improve Customer Satisfaction?
Many people see insurance as an unavoidable necessity and want to get the process over and done with as soon as possible. Buying insurance is also time-sensitive, as people need to arrange their cover quickly to ensure they're protected or renew their policy before their previous one expires. Long, drawn-out renewals can damage customer relationships and encourage clients to start shopping around.
A McKinsey report found that improving customer experience can increase company revenue by 10% to 15%. People commonly resent paying for insurance, as they perceive it as an intangible purchase they will never have to use, so companies need to make purchasing and renewing insurance as pain-free as possible.
A recent study found that 70% of customers' ideal user journey would be 100% digital. Two of the top reasons why customers give repeat business are ease-of-use and service satisfaction. You can secure a loyal client base by providing both of these factors through automation.
See also: Insurers Turn to Automation
3. Is Smart Software Already Available?
Yes, yes, it is.
In fact, insurance agencies are spoiled for choice as a variety of software is available, depending on the areas you want to automate.
One area where automation could make a considerable difference is in administration. Smart form software, such as we produce at Broker Buddha, converts static PDFs into interactive online forms. We use conditional logic to show questions that need to be answered and can auto-fill repeat information -- no more typing in the client's address five times. The software can automate reminder emails and even provide a dashboard where agents can see all their applicants and where the applications are in process.
The software is fully customizable for your business, and agents can even include Net Promoter Score surveys. A huge bonus is the signature capture technology, meaning no more printing, signing and scanning. By leveraging smart form technology, you can create a simple and easy client experience, improving client satisfaction and increasing the chance of repeat business.
One of the lessons learned from the past couple of years is that people are becoming more technologically savvy. With the 21st-century shopping experience becoming a "buy now with one click" affair, consumers are beginning to expect this across the board, no matter the industry.
Research has found that 65% of carriers will have adopted automation by 2024. Don't get left behind; stay ahead of the game and let your clients and employees enjoy the benefits of automation.
