How Insurers Can Leverage Omnichannel Distribution

By Aaron Davidson, CEO, Relay Platform —

Thriving in an ever-changing digital landscape relies heavily on how well insurers understand and reach their customers. A Google study showed that mobile searches for “insurance near me” have grown by over 100% since 2017. From there, the research stage for many buyers becomes more complex and nonlinear, meaning insurers would benefit greatly from increased visibility and accessibility to their products online.

Implementing an omnichannel distribution strategy can help insurers insert themselves into the buying journey more often to offer customers a variety of options for engaging with the purchasing process.

In this article, we’ll explain how leveraging omnichannel commercial distribution in 2023 can meet the changing needs and expectations of customers, improve competitive position, and drive growth and profitability.

What Is Omnichannel Distribution?

Omnichannel distribution is a strategy that companies use to sell their products or services through multiple channels, such as physical stores, websites, mobile apps, social media, and phone calls. By offering customers different ways to access their products, companies can improve their reach, convenience, and customer experience.

In the case of insurance companies, omnichannel distribution means that customers can purchase policies through various channels, including social media, email, or partnering with 3rd party distribution platforms. By providing multiple touchpoints for customers, insurance companies can improve customer satisfaction and retention, increase sales, and reduce the cost of customer acquisition.

Omnichannel distribution allows companies to track and analyze customer interactions across different channels, enabling them to better understand customer needs, preferences, and behaviors. This data can personalize the customer experience, optimize marketing campaigns, and enhance overall business performance.

How Can Insurers Leverage Omnichannel Distribution?

Insurance companies can leverage omnichannel distribution by offering customers a seamless and personalized experience across multiple touchpoints.

To adopt an omnichannel distribution strategy, insurers can assess their current customer experience and identify pain points or gaps in their existing channels. After this, evaluate the strengths and weaknesses of each channel and determine how to integrate them seamlessly, providing a consistent customer experience across all touchpoints.

This may involve investing in technology for real-time data sharing between channels or training staff to handle interactions across multiple platforms. Using various channels helps insurers cater to different customer preferences, enabling them to engage with customers in a way that suits their needs.

For example, insurers can use online portals to allow customers to manage their policies, submit claims, and receive updates on their accounts. They can also provide mobile apps that offer policy quotes, policy management, and claim submissions. Insurers can also offer customers the option to speak with agents over the phone or in person, providing a human touchpoint for customers who prefer more personal interactions.

Another way to leverage omnichannel distribution is to partner with Insurtech platforms. For instance, with Relay, insurers gain instant exposure to a community of agents and brokers. By gaining increased access to customer submission data, insurers can leverage the valuable insights derived to inform and enhance their competitive product development strategies.

What Impact Does Omnichannel Distribution Have on Agents and Consumers?

For agents, omnichannel distribution enables them to engage with customers through various touchpoints, such as the abovementioned channels. This flexibility allows agents to tailor their approach to each customer, providing them with a more personalized experience. Agents can also leverage technology to save time for more value-added activities, such as advising clients on risk management strategies and providing policy recommendations.

For consumers, omnichannel distribution offers a seamless and convenient experience that allows them to interact with insurers on their own terms. Customers can access information, purchase policies, and receive updates through various channels, depending on their preferences and needs. This flexibility gives customers greater control and transparency, improving their satisfaction and loyalty.

Insurers can use customer data and feedback from multiple channels to refine their products, services, and interactions. Agents can use customer insights to deepen their relationships with clients, provide more personalized advice, and identify new sales opportunities. Customers, in turn, benefit from more tailored and relevant offerings, as well as a better overall experience.

Omnichannel distribution benefits insurers, agents, and customers alike by creating a virtuous cycle of continuous improvement and seamlessly bridging the gap of connectivity.

Conclusion

Omnichannel distribution has a significant impact on agents and consumers, as it enables them to engage in a more personalized, convenient, and efficient way. The mutual benefits of omnichannel distribution for insurers, agents, and insureds include improved customer satisfaction and loyalty, increased sales and revenue, and enhanced operational efficiency and productivity.

Insurers that leverage omnichannel distribution can gain a competitive advantage by offering a seamless and personalized customer experience, reducing operational costs, and gaining valuable insights into customer behavior and preferences.

If you’re looking to take steps toward developing an omnichannel distribution strategy, contact Relay today.

About Relay

Relay enables real-time digital panels of carriers and MGA-MGUs that substantially increase success rates for agents and brokers. The solution unifies application questions, compiles instant and manual quotes into a Competitive Differentiation Table™, and delivers a configurable, analytics-powered Smart Client Proposal™ designed to better meet the needs of commercial clients. Our “I5” solution excels at Cyber, Professional Liability and Specialty Lines in particular, and is rapidly expanding. We facilitate billions in coverage across insurance and facultative reinsurance every year. With a rapidly growing client base in North America, Relay also counts among the few Lloyd’s accredited London market e-platforms. For more information, please visit www.relayplatform.com.

Source: Relay Platform