The role of collaboration in the insurance industry
Bryan Falchuk of Insurance Evolution Partners discusses the importance of partnership between legacy insurers and insurtechs based on research from his latest book.
The insurance industry has changed significantly over the last several years with new risks emerging due to factors like cyberattacks, the sharing economy and the pandemic. Add in the constant technological evolution as carriers streamline their processes to better serve policyholders, and there have been a wide variety of changes. While insurers understand the importance of working with customers to identify and mitigate risks, sometimes it’s easy to forget how important it is to collaborate in other areas, especially when it comes to implementing new technology.
Accenture says, “Overall, the consumers who reported not being fully satisfied could represent up to $34 billion in premiums annually, or up to $170 billion over the next five years.”
Claims is the beating heart of insurance service providers. It is the moment when insurers convert a policy into the financial help needed following a calamity, and it’s the point at which the sector proves its worth and makes good on the customer’s trust.
With such high stakes, you’d think insurers would do everything in their power to ensure a smooth, frictionless and stress-free claims experience. Yet, according to PwC’s Insurance Brand Sentiment Index 2022, something is going terribly wrong.
Many consumers prefer working with an agent or broker for insurance, despite direct-to-consumer platforms that offer an alternative.
It’s a new era for independent insurance agents and brokers. There are challenges with the continued economic turmoil, rising premium costs and changing customer needs. They’re also facing increased competition. The estimated total number of independent insurance agencies in the U.S. grew from 36,000 in 2020 to more than 40,000 in 2022 — a 9% increase. Many independent insurance agents and brokers have needed to adapt and do things differently to maintain their success. It has been a wake-up call. They can no longer avoid disruption or change.
However, there are also exciting new opportunities and paths for independent insurance agents and brokers to grow their businesses and earn revenue by taking a fresh look at how technology can help.
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