How Mo b ilit y
is transforming the of Insurance
Business
By Harry Snyder
Agencies need to live up to clients' 24/7 expectations.
T
There is no doubt that mobile technology has transformed the way relationships are managed and business is transacted. With 29 percent of U.S. adults owning a tablet or e-reader1 and 13 percent of Internet traffic from mobile devices,2 this form of interaction and communication is here to stay and will continue to expand its reach across all businesses and industries. While the insurance industry has been conservative in its adoption of leading-edge technology, there are a few major factors that impact a change in mindset for the insurance industry. Twenty or 30 years ago a professional, independent insurance agent’s job involved sitting at a desk with pen and paper. There was little threat of losing business to larger direct insurers with shinier technology. The life of the insurance agent has changed rapidly in the last decade with the evolution of technology. Outside of the evolution of technology, is the transition in the work force with the retiring baby-boomer generation and the incoming millennials. With the culture moving toward people who want their products yesterday and available all the time, there also is the new customer expectation of demanding service capabilities be available 24/7. Forty years ago, the top concern for a new insurance agent recruit may have been compensation and pension. Today, the top talent looks for the latest gadget that will make them more productive, but also help them attract a new class of clientele in the Generation X or younger buying class that associates cutting-edge technology with a best-inclass company with which they want to do business. In fact, there are increasing numbers of new workers who want to carry one device for personal and business use (also called: bring-your-own-device). In addition, there has been a shift in the socioeconomic profile of many target prospects and more diverse specialty lines of business that demand the insurance agent of the 21st century be more knowledgeable, personable and accessible.
Fortunately, technology already has begun to bridge some of these gaps in things like online gaming, social networking and mobility. Now is the time for insurance agencies to determine how they can leverage the conveniences these types of technologies provide effectively to enhance the end-client experience to sell product, which at the end of the day is what business has been doing since the first lemonade stand opened. While online gaming and social networking are hot technologies, mobility is the tool that stands to make the most measurable impact on the business of insurance. According to our user data, we have found that more than 80 percent of producers who are Vertafore customers carry an iPad when visiting customers. A recent survey of insurance agencies and carriers conducted by Vertafore, ACORD and Ovum, revealed that 40 percent of those surveyed want to use mobility to meet the expectations of their producers who use mobile devices. This is a narrow approach because they are neglecting to pay attention to the previously mentioned trends.
Meet clients’ needs What can (and should) insurance agencies do to not only empower producers, but meet client needs? To start they need to look at what the end-client wants and also what he or she may get from the competition, including: convenience of service; best value for the money; and dependability of the agency/agent. While mobility cannot improve the price of an insurance policy a client must purchase, it can impact consumer expectations of convenience and dependability (available through mobile apps), which can help professional, independent insurance agencies compete (especially with direct writers). [continued on page 24] july 13 23