2 min read
Recent market research shows that on average, brokers spend 40% of their time answering routine queries, 40% on claims and 20% on acquiring new customers. To keep your business sustainable and meet the demand for improved efficiency, it is key to explore insurtech and its potential.
A bird's eye view of the market
A survey from the trade body, Insurtech State of the Nation, revealed the broker market was split over the success of embracing insurtech innovation. According to this article, almost 40% of brokers believe the industry had not embraced technology-based innovation. Pinch-points included:
- Reducing general costs
- Making compliance with regulation easier
- Helping generate new customer leads
- Improving customer service
- Helping brokers better understand their customers and their risk
- Reducing office admin
Of these, reducing general costs, reducing office admin and improving customer service were considered to be the highest priorities. So, what did respondents believe to be their greatest barrier to making change happen?
- 77% the cost of implemementation
- 39% a lack of awareness
- 14% a lack of interest in technology
Certainly, the interest is there, and for a large part, awareness too. Ultimately, the report shows a high demand for more collaboration within the industry and more accessible innovation. As BIBA's head of corporate affairs, Andy Thornley, says:
Whilst there may not be a bang-bang moment where brokers will become disinter-mediated overnight, there may be persistent erosion of market share if collectively we do not embrace new, innovative ways of serving our customers and working more efficiently."
This is why we developed a new way of working together. Our four packages are designed to guide you from discovery - aligning teams, cultures and company objectives - through to building a bespoke prototype, taking it to market and receiving ongoing support.
Ultimately? These provide a fully tested digital product in your customers' hands within just 4-6 weeks. If you want to get a bot live before summer, now is the time to get started!
To accelerate innovation at your firm, here are three ways you can make change happen today.
1. Choose simple to use, high-impact technology
Innovation does not need to be complicated.
To make the most of your technology, work hand-in-hand with highly experienced teams who understand your field. While an off-the-shelf solution is great at first glance, to ensure a clear long-term return on investment, you need to make sure your team will really use it. It is crucial to align your team on its benefits, both in the short and long term.
Chatbots in various guises have been around for a while. Yet for the insurance industry, the technology is still fairly new. We are collectively still learning about its best possible applications.
So what do we know?
Chatbots can automate routine queries and take pressure off your call centres to handle them manually, resulting in an uplift in efficiency and productivity. It also takes you closer to your end customer through advanced analytics.
Our recent collaboration with Zurich Insurance was supported by a high net promoter score (NPS). High NPS means happier customers, with potentially higher customer loyalty and lower customer acquisition costs. It is a win-win.
Alexander Last, Continuous Improvement Consultant, and Kate Astall, Senior Digital Marketing Manager - Zurich Insurance
2. Look for scalability
Solutions can be expensive, particularly if they require full integrations with your front-end and back-end systems. After a pilot to test interactions with your customers, you need a robust piece of software that can grow with you and your clients.
If you work 9-5 and spend 40% of your day handling claims, that is at least 3 hours per day. A chatbot could automate all or part of this online, allowing your customers to process claims outside of your working offices (meaning you can spend time out the office stress-free). Over a week, that gives you 15 extra hours that you could spend talking to new clients, increasing revenue and adding value to your bottom line. 15 hours per week will soon become 60 hours per month. Per year, that adds up to 720 hours, which is 90 more working days to grow your business or take some well-deserved time off.
This is precisely why chatbot technology is empowering. Chatbots put you back in charge of your time.
3. Listen to your clients
You know your clients better than anyone.
When incorporating new technology, look for friction points in your current customer service. Then make some calls and ask them if they would be comfortable using the new technology, for instance by messaging a chatbot for day-to-day admin such as changing a policy address. This is a small puzzle-piece, which you can use to then map out the rest of your digital innovation.
Brokers, if you want to take charge of your time and spend more time doing what you love, automated technology is accessible.
This week, Spixii will be at BIBA 2018's hackathon. Supporting their theme of 'Innovate Evolve Thrive', we will be looking into ways we can support you in the era of digital transformation. Follow us on LinkedIn to keep updated!
