Insurance Providers: It’s Time to Re-think Business
Digital disruptions are affecting all kinds of industries, and the insurance space is no exception. Due to a multitude of different events, including Covid-19 and evolving consumer expectations, it’s becoming more and more important for insurance providers to keep up with technological advancements in order to stay relevant.
Here’s the truth: Insurance has changed – a lot.
Gone are the days when people shopped for insurance in person and your competitors were based in the same town. Now, with the internet, people can compare things like coverage and rates between companies based anywhere in the world.
So, what does this mean?
Clearly, it’s time for providers to pivot and adapt new ways of doing business. What’s one way to do this? Give your consumers the personalization they’ve come to expect throughout their other buying experiences. The question providers need to ask is, “What do individual consumers actually want?”
So, instead of staying focused on making sales, put yourself in a consumer’s shoes. What kind of buying experience are they looking for? How can the entire process of choosing insurance be made easier and more convenient for them?
Because here’s the thing: These days, if you’re not in a position to give consumers the ease and convenience they’re looking for, your competitors might be. And that means you risk losing business as more and more companies adapt to serve their customers better.
For example, if there’s one thing consumers dislike having to deal with, it’s mountains of paperwork. This is especially true among Millennials and Gen Zs who have grown up with technology.
Why is that relevant?
Because these generations are beginning to make up a more and more significant percentage of consumers. In other words, insurance providers need to adapt with them in mind, not just older generations.
Of course, in the past, paperwork was an essential part of buying insurance because there were no other options. But now? Papers can be signed on a tablet, which significantly reduces the hassle involved for everyone.
A shift in strategy
It’s clear that successfully adapting to changes in the insurance industry requires a shift in thinking. So, this means putting the emphasis on the convenience and value being offered rather than just the cost.
Again, insurance has changed. It’s become less important to focus on appealing to a wide audience. Instead, the key is to zero in on specific demographics and solve their specific problems.
For example, a young college student buying their first vehicle will have different needs than a retiree buying a sports car. But they could each benefit from being able to get the customized, embedded insurance they need right at the car dealership – without having to go through the hassle of getting it separately.
And the same is true for renters getting coverage or homeowners closing a sale on a new house. Ultimately, insurance that’s tailored to the consumer and their unique needs just makes sense.
So, emphasize the value being offered to consumers – through your insurance package, certainly, but also through a simplified purchase process that’s adapted to the modern age.
Harnessing APIs with digital storefronts
Once insurance providers are ready to approach insurance from a new angle, the next step is to examine how today’s technology can help. For example, application programming interfaces (APIs) are a highly relevant and precious tool in the insurance space. Why?
Because they’re the hinge that makes embedded insurance on partner websites and apps possible, which expands your reach. APIs are also essential for personalizing insurance for customers and giving them the coverage that works for them.
So, how can you use this technology to support your customers? By partnering with digital storefront solutions, insurance providers can set up platforms that address the needs of more groups of people, like 1099 contractors – without the risks involved in trying to figure everything out alone. The result? Better bottom lines and happier customers.
Providing value in a changing insurance landscape
Yes, times have changed – and with them, consumers’ expectations surrounding their insurance-buying journeys. That means carriers need to think from their customers’ perspectives and offer them the convenience they want.
Ultimately, in the age of InsurTech, those who focus on the buyer and their needs are the ones who will stay relevant.
At Genius Avenue, we know how important it is to harness technology in the insurance space. That’s why we created our Genius Storefront, a digital benefits shopping platform that integrates with E&A and TPA solutions to customize marketplaces and improve shopping experiences for everyone.
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