Though technology is constantly developing, brokers often remain reluctant to surrender the legacy technology they know and trust. However, in a world where instant gratification is rewarded, brokers are slipping out-of-touch with their 21st century customers and insurance ecosystem partners, not to mention missing out on all the benefits of advanced technology themselves.
Here are the top reasons why brokers need to move away from their legacy platforms and adapt to the world around them, or else run the risk of being usurped by more nimble customer-centric insurtechs.
Working smarter not harder
Gone are the days of rifling through hard copy documents, form-filling and manually cataloguing information into a database. Investing in technology and making operations truly cloud-based means that brokers can access files from any location, at any time and from any device; vital information can therefore be sourced with a few easy clicks, rather than running back to the office for another file. Real-time digital interaction between brokers and their customers also speeds up communication, and means that claims, policy changes and renewals can all be performed much more efficiently.
Using the data
Being able to access data more easily also means that brokers can monetise it in a more meaningful way. As a result, technology allows brokers to better capitalise on the data they have. By tapping into their business data and integrating it with their CRM systems, firms can benefit from a 360-degree understanding of each customer. This will allow for customer profitability analyses, to establish the value of doing business with a particular customer. This way, they can make effective and informed decisions on which customers to spend the most time and resources with, in order to generate the greatest return.
There is also the opportunity to spot cross and upsell opportunities. Good quality data makes it far easier to identify these lucrative opportunities. With a quick glance, brokers will be able to see where there is potential to suggest other insurance policies their customers may need. This means brokers are more likely to win that sale, and customers can rest safe in the knowledge that their specific needs are being met. This not only provides an all-round better customer experience, but also cements the role of the broker in the process.
With brokers working more efficiently and getting the most out of their data, expanding business operations should no longer seem like such a pipedream. Whether operating as a one-man band or as a global operation, a unified system can be easily scaled to suit the needs of a business overnight. After all, the process will be the same whether a firm is expanding into a new office or a new country.
The same holds true when a firm undergoes a merger or acquisition. Any newly merged business should strive to collate data from both firms into one sole repository in order to provide easy access to forecasts, renewals and customer holdings amongst other information. This will be essential if businesses want to make quick, effective decisions post-merger.
Legacy systems can also create a massive issue when it comes to regulatory compliance. In order to comply with GDPR, for example, some brokers still need to trawl through each individual file and system in order to ensure they arent breaching the new regulation. Advanced technologies will make this enormous task a thing of the past. In fact, Novideas platform is automatically GDPR compliant, as its built on Salesforce, relieving brokers from wasted time, money and the extra stress of ensuring compliance.
As these reasons demonstrate, advanced technologies will help brokers efficiently and effectively grow the business, increase profitability, and become more customer centric, which is increasingly necessary. However, if brokers remain fearful of technological advancement, they will miss out on these benefits, and so will their customers.