NAILBA Perspectives Perspectives Summer 2018 - Page 33

TECHNOLOGY AS THE NEW NORMAL ing annuity and life insurance in 2018 is an “outdated application and underwriting process, result- ing in additional time and costs, and undermining sales” vi . A smart brokerage will recognize the areas of business that can be made more efficient through technology, thus allowing for more time and resourc- es to be spent cultivating personal relationships and pursuing new ad- visor leads. With almost half of the American population uninsured or underinsured vii , there is a huge need for more advisors and a huge un- tapped market segment that no pro- cess or strategy so far has been able to reach. Used to its fullest poten- tial in automating and streamlining operations, InsurTech could be the solution that closes this gap. The true potential for gaining an edge over competitors in such a competitive industry lies in the delicate balance between adopting technology and preserving your tra- ditional sales and marketing strate- gy. Even with the growing presence of technology in insurance, it is as important as ever to maintain an emphasis on building strong person- al relationships at every level of the industry. It was noted earlier that consumer trust among all business types has been in decline. More spe- cifically, a 2014 EY Global Consumer Insurance Survey found that North American consumers trust insurance companies less than supermarkets, online shopping sites, and even banks viii . EY infers that this low trust “has been caused by weak relation- ships with insurers,” and draws the conclusion that “consumers want more frequent, meaningful, and per- sonalized communications” ix . How can brokerages give their advisors the attention and resourc- es needed to provide this level of service to existing clients, though, while also increasing recruiting ef- forts to serve the uninsured and underinsured half of the national market? By using efficient technolo- gy to reduce the busywork that goes into operations and relationship management, leaving more time to focus on the relationships that tech- nology cannot replace. This is the future of insurance. FOOTNOTES DeMers, Jayson. (2018, May 9). “How Brands Should Be Working To Fix The Consumer Trust Crisis”. https://www.forbes.com/sites/jaysondemers/2018/05/09/how-brands-should-be-working-to-fix-the-consumer- trust-crisis/#6a1eceba554c i ii CompTIA. (2018, January). “IT Industry Outlook 2018”. https://www.comptia.org/resources/it-industry-trends-analysis iii iv v Deloitte Center for Financial Services. (2017). “Fintech by the numbers.” https://www2.deloitte.com/content/dam/Deloitte/us/Documents/financial-services/us-dcfs-fintech-by-the-numbers-web.pdf “Fintech by the numbers.” Fintech by the numbers.” vi Deloitte Center for Financial Services. (2017). “2018 Insurance Outlook.” vii “2018 Insurance Outlook.” EY. (2014). “Reimagining customer relationships: Key findings from the EY Global Consumer Insurance Survey 2014.” https://www.ey.com/Publication/vwLUAssets/ey-2014-global-customer-insurance- survey/%24FILE/ey-global-customer-insurance-survey.pdf viii ix “Reimagining customer relationships: Key findings from the EY Global Consumer Insurance Survey 2014.” www.nailba.org 33