According to a study at the Insurance Institute of London, commercial insurance brokers will need to have evolved into real business advisors for their SME customers by 2027 or face extinction.
Risks are no longer the same these days, and because of this, customers now require top-notch advice to match their specific risks. Being able to meet this need is what can make or break an insurance broker.
In this blog, you will learn about what is happening in the insurance brokerage industry, how it can affect your business and tips on what to do next.
INSURANCE BROKERAGE BEFORE NOW
In an article by Brittanica, we learn that many businesses have failed due to, among other things, inadequate distribution systems, mismanagement, as well as speculative investments, and lack of regulation. As the insurance industry grew, the market expanded rapidly in the 20th century alongside world trade. This caused the increased need for underwriting, claims as well as many other brokerage services.
INSURANCE BROKERAGE NOW
Times are changing. It is no longer the 20th century. You cannot rely on manual processes and legacy technologies to make it in any industry. Unless you are a scrounger.
The industry has survived many centuries but has not changed much. However, even customer buying habits are changing, highlighting the need for evolution to save the insurance brokerage.
People want to be able to work anywhere and have transparency and understanding of the product they are using. The traditional insurance process does not satisfy the requirements leading to the possible extinction of this industry.
WHAT THIS MEANS
This means, without immediate action, the insurance industry faces extinction, and insurance brokers likewise. The current customers are not happy with just buying insurance and having little to no contact with the broker afterward. They expect a personalized experience instead of being bundled up with everyone else. This is the kind of service they are receiving across other industry verticals, a more customized and omni-channel experience. People would rather self-insure than take up insurance that has poor service during the lifetime of a policy.
WHAT YOU SHOULD DO NOW
An insurance broker must be intimately familiar with their client's opportunities and obstacles. That way, they are able to tell what is most important to each client and be able to serve their needs in the most effective way. A customer has adjusted to tailor-made services, so a broker who delivers them is guaranteed succeed.
It is wise to copy the retail industry and provide quality customer service like adding that personal touch, finding the perfect fit for customers, educating customers, etc.
Technology can be a driver for delivering this unique value. Selecting the right software as a service platform can boost employee productivity and provide a customized and omni-channel experience for customers; they can input their personal needs and be served in the best way possible.
In conclusion, in this day and age, it is of utmost importance to meet the needs of each particular individual. Customers want a sense of security. They need to know the solution is the one and best for their problem. A broker who can understand this will surely be booming in the next decade.
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