Distribution Technology: Where Personal Insurers Are Investing Today – Insurance-Canada.ca

New SMA Blog by Mark Breading, Partner, Strategy Meets Action

We say it often here at SMA – the personal insurance segment is often at the forefront of the insurance industry when it comes to deploying new innovations, particularly in distribution. Over the next five years, insurers focused on personal lines will likely continue to lead the distribution revolution through new technologies and channel strategies. Where insurers invest today to support distributors, they will set the stage for their channel partnerships in the future, either by building solid relationships with agents/brokers and others, or by de-emphasizing some channel partners.

The new research report from SMA, Distribution Technologies for Personal Lines: Carrier Plans in 2023 and Beyonddescribes the results of a survey of executives on the current state of digital opportunities offered to channel partners, an assessment of the challenges and obstacles in delivering new opportunities, and network operators’ plans to bring new digital sales and service opportunities to market.

When analyzing the top investments made by transportation companies in consumer digital distribution technologies, two key themes emerge: increasing automation and improving efficiency between insurers and dealers. Seven out of 10 insurers cited data pre-population as one of their key sales investments, allowing them to collect more reliable information for quoting while minimizing the back-and-forth between underwriters and agents. The second highest area of ​​investment, e-signature capabilities, also improves efficiency by streamlining the binding and policy issuance process. In contrast, the study also shows where insurers invest the least. When it comes to digital sales opportunities, insurers are least focused on quoting tools, which only 6% of insurers prioritize today.

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Research shows that self-service capabilities are a priority for leading insurers when it comes to digital maintenance investments. Most insurers say they are investing in agent service portals, and more than half are also investing in features like online application filing or paying an invoice. On the other hand, no insurer reported investing in a mobile agent app.

In a market like retail, where customers and agents expect on-demand service, it’s critical for insurers to continuously invest in digital offerings and maintain flexible technology roadmaps. Understanding stakeholder needs and allocating investments to improve digital capabilities not only improves the customer experience of agents and policyholders, but also creates efficiencies internally.

For more information on retail sales technology strategies and investments, read our latest research report, Distribution Technologies for Personal Lines: Carrier Plans in 2023 and Beyond. This report is part of SMA’s research series based on surveys and interviews with insurers, agencies, brokers, MGAs and others in the distribution channel, including insights from ReSource Pro’s extensive distribution customer footprint. Contact the author for more information on these new sales research and consulting services.

Contact the author for more information.

About the author

Mark breading is known for its insights into the future of the insurance industry and innovative use of technology. Mark advises insurers and technology companies on forward-thinking strategies for success in the digital age. His inventive methods, fresh ideas, creative conceptualizations and ability to integrate InsurTech and transformational technology into business strategies are unparalleled. He also leads SMA’s research program, publishes 25-30 research reports per year and conducts various custom research projects for insurance and provider customers. His thought leadership in the areas of InsurTech, transformational technologies, customer experience and digital strategies has earned him a ranking as one of the “Top Global Influencers in InsurTech” by InsurTech News and Onalytica and a place among the ten finalists for the “Top Global IoT in Insurance Influencer Award”. “

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Prior to joining SMA in 2009, Mark spent 25 years at IBM, including positions as Global Insurance Strategist and Director of Global Financial Services Executive Conferences, in addition to senior consulting and marketing roles. Mark co-developed IBM’s Account Based Marketing program and led the global project office to implement ABM across all industry verticals worldwide. Mark has held both technical and business roles in sales, consulting, marketing and business strategy and has been advising insurers around the world for nearly 30 years.

About SMA, a ReSource Pro company

At Strategy Meets Action, our clients advance their strategic initiatives and accelerate their transformation journeys by leveraging our forward-thinking insights, deep vendor insights, and deep industry expertise. Strategy Meets Action is a consultancy that works exclusively with insurers, MGAs and providers in the P&C market. For more information, visit www.strategymeetsaction.com.

About ReSource Pro

ReSource Pro provides insurance organizations with integrated operational solutions to improve growth, profitability and insurance outcomes. Headquartered in New York, ReSource Pro’s global service centers attend to customers’ operational needs 24/7. The company is recognized as an industry thought leader and has been named one of the Inc. 5000 Fastest Growing Private Companies annually since 2009. It is known for its focus on innovation, service excellence and trusted partnerships, as well as its unique insurance operations productivity platform. ReSource Pro’s 5,000+ employees provide dedicated support to hundreds of insurance organizations, achieving a consistent customer retention rate of +97% over a decade. Visit www.resourcepro.com for more information.

SOURCE: Strategy Meets Action (SMA)

Tags: Porters, Mark Breading, Personal Lines, Strategy Meets Action (SMA), Technology Investments

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