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TECHNOLOGY AS THE NEW NORMAL ing annuity and life insurance in 2018 is an “outdated application and underwriting process, result- ing in additional time and costs, and undermining sales” vi .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”. trust-crisis/#6a1eceba554c i ii CompTIA. (2018, January). “IT Industry Outlook 2018”. iii iv v Deloitte Center for Financial Services. (2017). “Fintech by the numbers.” “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.” survey/%24FILE/ey-global-customer-insurance-survey.pdf viii ix “Reimagining customer relationships: Key findings from the EY Global Consumer Insurance Survey 2014.” 33