After banking, the insurance sector is perhaps the most technologically disrupted part of the financial services industry. Innovations like artificial intelligence have opened a new world of possibilities to develop insurance products and reach out to customers.
While insurance technology, aka insurtech, is good news to insurance companies and policyholders, is it a benefit to insurance agents? What at first seems like the bane of the careers of these professionals can be a boon. If you are planning to sell final expense insurance, below are the ways insurtech will help you make money.
Big data and analytics allow insurance to come up with more targeted products. Insurance policies can be made to specific groups of buyers more accurately, giving customers a more diverse choice.
First-time buyers and existing policyholders can unlock more suitable options to achieve systematic savings without giving up key coverage features. Although such products can come with lower commissions, insurance agents will find it easier to find high-quality leads, which promises greater efficiency and more sales.
Fast Lead Generation
Speaking of leads, digital channels make it painlessly easy to attract potential prospects. The explosion of smartphone usage and the convenience of online shopping are giving incentive to insurance companies that go digital.
Direct mail and other traditional marketing methods will not become obsolete soon, but the Internet expands business reach. With the right digital strategy, an insurance brand can be broadly visible in searches. Insurance agents can sit back and wait web-related inquiries from serious buyers in no time.
Yes, the competition can be greater online, especially now that fintechs are also rivals of incumbent insurers. However, a brand with an SEO-centric website with highly engaging social networking accounts and with a strong presence in popular insurance platforms can be super attractive to tech-savvy customers.
Increased Customer Interaction
Thanks to insurtech, insurance agents these days have more ways to interact with customers. With the right sales pitch, you can be incredibly prolific without sacrificing quality. The proliferation of mobile applications and web-based platforms lets you get in touch with buyers the convenient way.
Before, insurance agents had to do a lot of the dirty work when it comes to customer education. They needed to explain what a particular insurance product and how it compares to others on the market. The lack of product familiarity made the job of insurance agents more demanding.
That is no longer the case. The Internet allows anyone to research insurance products and premiums in advance with ease. Since insurtech has made insurance shopping virtually as simple as buying clothes, buyers these days already know the process.
The value of speaking with insurance agents might no longer be as necessary, but people still prefer to talk to a live person to help make an informed decision.
Although the fintech boom might be automating the insurance shopping process on some level, nobody could put a price on professional service. Insurtech might have made things a lot easier, but insurance agents are, more often than not, necessary to close the deal.