The insurance industry is constantly evolving and the challenges the sector faces today are not the same as a decade ago. Shifting consumer landscapes and expectations, as well as economic, technological and political movements are constantly driving change across the industry. As a result, there are currently 6 key challenges for insurance brokers to overcome.
Legacy systems and processes may have functioned perfectly well in years gone by but efficiency improvements being employed by competitors are making it essential for many insurance brokers to look for an upgrade when it comes to workflows. Performance and productivity can be affected by a range of factors, from out of date tech to a lack of integration between key systems. Solutions include digitising existing processes and the use of workflow automation.
Upgrading customer experience
Customer-centric businesses that deliver positive, well thought out experiences do better today in any industry when 86% will pay more for a great customer experience. Customer insight and personalisation have a key role to play in this – the use of a CRM, for example, can provide essential perspective on customer preferences and history that can be used to shape a more customised, satsifying experience.
More effective lead generation
The way consumers buy services such as insurance has changed considerably today, which means it’s necessary to upgrade lead generation too. From the increasing importance of online reviews to data privacy and GDPR considerations there is a lot to factor in to the process of generating new business. An effective lead generation strategy is essential. This should include features such as the use of social media and blogs, insights into where a target audience resides online, as well as effective use of resources for advertising spend.
Political and economic uncertainty
With talk of a recession and Brexit on the horizon there is a lot of uncertainty in the market today. Brexit in particular presents many challenges for insurers, among them the potential loss of UK passport rights to freely underwrite policies and insure across European borders. A range of solutions are available (for example, establishing an EU/EEA subsidiary). The key is that there is an awareness of the problems this could present and that potential solutions have been identified so that response to change can be swift.
Creating an optimised process for your sales strategy
Clearly defining the sales process can remove a lot of the uncertainty from it. It will ensure that everyone knows what’s involved and make it a lot more measurable. There are three ways to enable sales process optimisation: 1) analyse typical activities within the process 2) A/B test on your staff 3) provide training to those who carry out the sales process every day.
Previously unknown risks
Cybercrime is not new but the risks that it presents are evolving all the time and even staying on top of these presents a challenge for many organisations. Insurance brokers can prioritise being well informed about the latest online risks and up to date with the newest cyber risk management standards. An internal cyber security policy, email security system and secure data storage are all an essential part of this.
Mastering these 6 key challenges will provide a firm foundation for any insurance broker to move forward into the next decade.