ePayPolicy

Consumers Expectations Fuel Growth of InsurTech Across Agencies & Brokers

The insurance industry, traditionally reliant on personal relationships and paper, is rapidly adopting InsurTech solutions like Agency Management Systems to meet modern consumers' high expectations for on-demand, personalized, and convenient digital services—especially via mobile devices—mirroring trends seen in other sectors such as food delivery.

Insurance has historically been a traditional industry, driven by personal relationships — and paper. While not the earliest adopters of technology, the industry is making significant progress in this area. According to industry statistics, some 90 percent of agencies use an Agency Management System (AMS). Many agencies are reaping the benefits of their AMS systems (such as Vertafore, Applied 24, and others) to streamline operations.

Welcome to the digital age of InsurTech!

While agencies are working smarter due to technology, clients are often even further ahead in tech adoption. Consumers today are demanding and receiving on-demand digital service from a variety of sources.

Insurance offerings may not change much over time, but they are being sold to modern consumers who want immediate results, personalization, and ease of use. In today’s digital world, convenience is king. Industries have sprung up and exploded around the concept of convenience. For example, food delivery apps like Grubhub, Doordash, and Postmates have redefined “take-out” to mean ordering from your favorite restaurant and having food delivered to your door for an extra fee.

Convenience can be defined in several ways: time, accessibility, usability, and design. Different consumers have their own definitions, and it’s important for a product or service to cater to all their needs. It’s not just about the rate they pay, but also the level of support, customer care, and the ease of use of the company’s services. If consumers aren’t 100% satisfied with every aspect of the transaction and every interaction with the vendor, they have plenty of other options that offer the same service. This is the standard technology has set for service delivery in the digital age.

Your clients are mobile

With the growth of digital, consumers are conducting more business via their mobile devices. Approximately 40% of online transactions are happening via mobile. Busy business owners order supplies, book travel, and even pay company credit card bills with a few clicks. Their business is not confined to “business hours,” because their phone or tablet allows them to multitask in the field or pay business bills from anywhere. It’s anything but business as usual.

Bridging the convenience gap

In response, many agents and brokers have made their websites responsive and even offer some type of convenient app. That’s a good start. However, clients can easily spend 90 percent of their time on their phone. Agents and brokers need to put themselves in their clients' shoes and identify the disruptions causing the most pain, because odds are there is a service or product currently available that would address the problem. For example, in payment processing, consumers prefer to pay digitally. Historically, accepting credit cards and ACH payments was either too costly or involved too much red tape. Companies like ePayPolicy now provide easy and secure solutions that allow agencies and brokers to start collecting payments within 24 hours after signing up.

Where to start with InsurTech?

With so many InsurTech providers in the marketplace, it’s easy to get overwhelmed. The best place to start is internally. Working with your team and creating an action plan around your clients' needs will set a solid foundation moving forward. Then, as you attend tradeshows, sit through product demos, and speak with your peers, you’ll be able to select solutions that address your current and future needs.