Many agents see technology like a threat. Several years ago, when hundreds of millions of dollars began to flow into insurtech companies, the promise these startups made was that they would disrupt the insurance coverage industry. An upswing of online insurance distribution firms, with steadily increasing capabilities, has added to the anxiety of insurance agents.
But as the years pass, what we have seen is technology that, while it might be disruptive, supports the commitment of reducing the drudgery of agents' lives. It can do this by eliminating the need for manual data gathering, creation of applications, coverage analysis, policy marketing and proposal preparation. We've got the technology offers to free agents to invest additional time with clients and prospects, letting them broaden and deepen relationships, the most important and highest-value activity of the professional agent of the future.
The AI Promise
If one steps back coming from all the tasks performed by agents today, data gathering, manipulation and presentation take up a large number of the time. All of these tasks can and will be performed more proficiently by artificial intelligence (AI).
Peter Diamandis, the writer of “Abundance: The Future Is Better Than You believe,” says that not only will everything is going to be knowable within the very near future, but artificial intelligence will be able to retrieve it and organize it for all of us instantaneously. While this seems fantastic with a, it’s already taking place. Many insurance companies, for example, are already purchasing third party data for those or most of the underwriting information they need to make coverage and pricing decisions after which using this data to make those decisions instantly.
One from the largest commercial carriers continues to be demonstrating the capabilities of AI to get rid of agent's work by quoting business owner policies (BOPs) with nothing a lot more than an address. While this capability is nascent, it will be expanding dramatically within the next few years. In personal lines, Plymouth Rock Insurance has revealed its ability to underwrite, price, sell and deliver home insurance with a lower-than-average loss ratio with nothing more than an address. These types of capabilities are now being developed now and will rapidly lessen the time agents must spend on these and other alike activities soon. And they won't be limited to simple accounts; they'll also extend to probably the most complex middle market and enormous accounts, as well.
AI for agents can collaborate with one of these smart underwriting systems and do much of the now laborious analysis required on differing policy options. When clients need service, or claims assistance, agency automated technology will handle the facts. Although some capabilities during these areas are already available. we'll think back in the coming decade and think modern tools is like the Model T in comparison with the Dreamliner in speed and simplicity of use.
With these capabilities coming soon, what's going to the function of the agent of the future be? In my opinion it will be to build up real relationships with clients which go beyond the superficial to a true knowledge of the requirements, wants, aspirations and fears that an individual organization or person experiences. With this knowledge, agents will be able to tailor coverage solutions in a manner that is a lot more intimate than can be done today.
No More Free Pass
Until now, clients have largely given insurance agencies and agents a spread the customer experience they are now demanding from other businesses. This isn’t going to continue. The typical person’s routine experience offers customized recommendations according to detailed knowledge and an knowledge of their other interests. Although this continues to be quite simple in the beginning, like suggesting additional products according to purchase history, it's evolving rapidly.
What people experience of other areas of their lives necessarily informs their expectation in others. For instance, Amazon and other online stores can now automatically deliver things as mundane as toilet paper to some consumer before he or she knows she needs it. Soon enough, that toilet paper will not only be delivered before it’s needed, but alterations in brand, quality, quantity and other factors will be performed automatically with respect to the consumer since the vendor's AI knows prior to the customer does what they really want or need.
When agents marry this kind of technology towards the unique human communication which will remain necessary for complex purchases like risk transfer, the near future is going to be much different.
Some are worried that technology will enable businesses and customers to bypass agents making insurance purchase and placement decisions based on their artificial intelligence alone. I don’t think this really is likely. It’s correct that properly programmed algorithms can sort and analyze data far faster than any human. But it is just the human who can look into the eyes of another individual, judge the voice tonality, body gestures and a large number of other nonfactual and nonverbal cues that create and power true communication. Once the agent is freed from the drudgery of data analysis and manipulation, she will focus increasingly on the human aspect of serving clients. And she will be able to do so faster, better and more deeply.
This marrying of technology and human capability will serve to increase opportunity at the same time it lowers costs. Although this future isn’t here yet, it is close, so agents need to start to prepare now to remain competitive in the future. The initial step is to maximize their existing data gathering and analysis capabilities and leverage existing technologies towards the greatest extent possible. The beginning point for your may be the commonplace agency management system. Automating every agency process possible with current technology will prepare the forward-thinking agent well for what is originating soon.
Beyond the Transaction
The other focus for agents is behavioral. Even just in middle market and greater accounts, selling insurance has become largely transactional, particularly in new business situations. Agents all too often allow themselves to become placed in the trap of providing apples-to-apples replacement comparisons. These behaviors serve neither the agent nor the client well. One has only to look at the real, genuine confusion on the part of the business community regarding business interruption policies that didn't provide coverage for coronavirus-related losses to demonstrate the result of quoting a standardized set of coverages, rather than focusing on communication about coverage needs and solutions. The agent who ends the process of allowing herself to become treated as a commodity is the agent that has begun to prepare for an effective and prosperous future.
As agents are let go up by technology, they will have the time necessary to delve deeply into their client's greatest concerns. They're going to have virtually limitless methods to provide coverage run by artificial intelligence. And they will have the well-earned trust of the clients because of the deepened relationships that time and technology have empowered.
