New Digital Solutions are Transforming Insurance Distribution
By Mark Breading, ReSource Pro —
At ReSource Pro, we talk a lot about the technological innovations underway across the insurance industry. However, the reality remains that many processes continue to involve manual paperwork and legacy systems, leading to reduced efficiencies and increased chances of errors. While carriers have invested heavily in distribution capabilities and enhancing agent-carrier connectivity, many agencies and brokers lag behind. But the tide is changing, with a wide range of solutions – from leads to binding – emerging to streamline the distribution process for agents, brokers, and MGAs.
A new research report from ReSource Pro explores today’s distribution technology landscape and spotlights the solutions that can benefit the distribution value chain for agents, brokers, and MGAs. To identify the solutions that will add the most value to their businesses, it is critical for distributors to first identify their top pain points.
Pain Points Facing Insurance Distributors
Data enrichment represents a significant challenge for agents and brokers. Customers often provide incomplete underwriting information, leaving agents/brokers to fill in the gaps. Data enrichment solutions help fill these gaps. While historically, these solutions have been carrier-centric, many vendors are now extending their offerings to distributors, such as using APIs to connect to third-party data sources (public and private) to populate key underwriting information. This also helps facilitate another common sore area – data pre-fill.
Manual data entry and, particularly, duplicate entry have long been a significant drain on agency/broker resources. Automating data pre-fill can be a real game changer, vastly improving the customer experience. As with other digital capabilities, the approach to and scope of pre-fill varies. Robust solutions often involve many digital transformation tools that, when combined, significantly expedite the pre-submission process. For example, more insurance providers are relying on Optical Character Recognition (OCR) to digitize paperwork. OCR can be used to scan ACORD applications and identify key data points. AI and machine learning can then be used to map this data to AMS, carrier applications, and more.
Balancing Technology with Human Expertise
For agents, brokers, and MGAs seeking to enhance their current distribution processes and capabilities, now is a prime opportunity. As technology continues to advance and upfront development costs decline, access to digital solutions is expanding for small and large distributors alike.
However, at the same time, achieving efficiency and improving the customer experience requires striking a delicate balance between cutting-edge technology solutions and maintaining a human in the loop. Many lines of business continue to require human expertise to make coverage decisions. And the personalized touch that human professionals bring can be a real differentiator in the customer journey. It will be critical for agents, brokers, and MGAs to recognize the synergy between technology and human expertise when pinpointing opportunities to transform their distribution processes now and in the future.
Discover more insights in the newly released research report, “The P&C Distribution Landscape: Companies, Solutions, and Partnership Opportunities for Agent-Carrier Connectivity.”
About The Author
Mark Breading is known for his insights on the future of the insurance industry and innovative uses of technology. Mark consults with insurers and technology companies on forward-thinking strategies for success in the digital age. His inventive methodologies, fresh ideas, creative conceptualizations, and ability to incorporate InsurTech and transformational tech in business strategies are unparalleled. He also leads SMA’s research program, publishing 25-30 research reports per year and conducting various custom research projects for insurer and vendor clients. His thought leadership in the areas of InsurTech, transformational technologies, customer experience, and digital strategies has earned him a ranking of one of the “Top Global Influencers in InsurTech” by InsurTech News and Onalytica and a place in the ten finalists for the “Top Global IoT in Insurance Influencer Award.”
Before joining SMA in 2009, Mark spent 25 years with IBM in roles including the Global Insurance Strategist and Director of Global Financial Services Executive Conferences in addition to leadership roles in consulting and marketing. Mark co-developed IBM’s Account Based Marketing program and led the global project office to implement ABM across all industry verticals worldwide. Mark has held both technical and business roles in sales, consulting, marketing, and business strategy and has advised insurers around the world for almost 30 years.
About SMA, a ReSource Pro company
At Strategy Meets Action, our clients advance their strategic initiatives and accelerate their transformational journeys by leveraging our forward-thinking insights, deep vendor knowledge, and vast industry expertise. Strategy Meets Action is an advisory firm that works exclusively with insurers, MGAs, and vendors in the P&C market. For more information, visit www.strategymeetsaction.com.
About ReSource Pro
ReSource Pro brings integrated operational solutions to insurance organizations to improve growth, profitability and insurance outcomes. Headquartered in New York, ReSource Pro’s global service centers address client operational needs around the clock. Recognized as an industry thought leader and listed as one of Inc. 5000 Fastest Growing Private Companies annually since 2009, the company is renowned for its focus on innovation, service excellence and trusted partnerships, and its unique productivity platform for insurance operations. More than 5,000 ReSource Pro employees provide dedicated support to hundreds of insurance organizations, consistently achieving a +97% client retention rate over a decade. For more information, visit www.resourcepro.com.
SOURCE: Strategy Meets Action (SMA)
