It’s one of the hottest topics in today’s corporate world – how do businesses use innovative technology to grow and improve? At the core of this discussion is AI and automation. Do a Google search for anything and you’ll see AI’s response at the top of the results. The insurance world is no different, as carriers, agents, and brokers are actively seeking out technology tools to improve efficiency, reduce manual errors, and enhance customer service.
Tech is a worthwhile investment if done correctly. Systems, programs, or AI should be an enhancement of a process or function, not a quick fix for serious underlying business problems. There are powerful tools for automating processes within an insurance firm but consider what you’re trying to achieve and how to get the best return on your investment.
Fix broken processes before introducing new technology
Technology can be an addition or a substitution, but it should only replace defined, proven processes. If you have a dependable claims process, explore automating repetitive tasks or upgrading the process with a new system. But if your customer service reps can’t answer basic questions or clients can’t figure out how to contact you, those challenges need to be corrected first.
In addition to processes, your data may be in need of a fix before adding automation. You’ve heard of garbage in, garbage out? Well, AI datasets that haven’t been verified can lead to inaccurate analysis of performance and KPIs, poor decision-making, or misguided strategies. Learn the source of AI-generated insights, including collection methods and possible biases, so you’re better equipped to introduce innovative solutions across your business.
Enhance your insurance agents’ business across functions
Firstly, machine learning and large language models should enable success for human insurance professionals, not impede them. Ask yourself, will implementing this program or system drive predictable, profitable organic growth (PPOG)? How does the change help my business retain clients, partner with carriers, and better prepare my staff across functions? Some examples of how technology may be used to enhance processes include:
- Automation: Technology that simplifies steps within marketing, data entry, or claims intake processes is a great addition to your business. Many insurance brokers use automation tools that connect different software applications. Some systems will align new leads to email marketing campaigns based on specific triggers, like purchasing a new policy or requesting a quote. It also supports claims intake by creating a new case in a case management system, notifying the assigned claims adjuster, and updating the CRM.
- Data collection: Gathering data into business intelligence tools can create real-time custom dashboards that track sales performance, claims processing times, or other key metrics. Likewise, some brokers use programs that automatically pull data from their CRM, insurance management software, or other tools to develop sales and performance reports.
- Data analysis: After collecting accurate and relevant data, technology can assist with extracting insights, identifying patterns, and interpreting trends. Certain analytics platforms offer real-time sentiment analysis and predictive modeling. Firms are using these tools to analyze the data within CRMs to model and predict client behavior. This boosts retention, uncovers cross-selling opportunities, and drives better decision-making.
- Sales processes: Prospecting tools are another common addition to broker business technology and AI-powered personal sales assistants designed for insurance firms are in the market today. Brokers can integrate these tools with their CRM systems to gain detailed insights and targeted prospect lists, driving productivity and streamlined client engagement.
- Client communication: Some brokers have found success digitizing simple client interactions, such as appointment scheduling, content creation, or status updates. When integrated with your CRM, scheduling tools can automatically add appointments to the client’s record and notify your team when a client books a meeting. Updates can be sent to clients on the status of their claims via email or SMS. Other enhancements include automatic alerts when a policy is about to expire or when a payment is due, ensuring clients are notified promptly.
- Lead management: Some systems automatically capture leads from web forms and add them to a CRM. The tool will then assign new leads to producers based on predefined criteria, such as location or type of insurance requested. This ensures no lead is missed and that follow-up actions can be automated.
- Compliance and regulatory tasks: With the right programs, you can set up automated reminders for compliance deadlines, such as license renewals or automatically log communications and actions taken on client accounts, ensuring there is a clear audit trail for compliance purposes.
Collaborating with technology can improve workflows for business owners, producers, and service staff, allowing the team to focus on driving growth and not focusing on repetitive tasks.
Prioritize human skills where technology is underdeveloped
Human oversight is still needed in key areas of your business, especially in complex issues or sensitive situations that require empathy and a human touch. AI and other automation technology cannot develop relationships, mimic emotional or social skills, understand nuance of language, such as sarcasm, or resolve interpersonal conflict. This doesn’t just apply to clients, as technology should not be a replacement for mentoring your staff, setting employee expectations, or making strategic business decisions.
While automation software can streamline or uncomplicate portions of your business, you’ll still need accredited, experienced partners such as legal representatives, strategic advisors, or financial consultants. Customer service should retain some human element, as clients may lose trust if communications are noticeably robotic, especially with uncommon or urgent inquiries. Nationwide CTO Jim Fowler agrees, sharing: “…we believe there must be a human in the loop. Our bionic world is humans plus machines – we want to make sure that in any decision that is made specifically with generative AI, there is a human involved in vetting the output of the model. People provide empathy, judgment and reason… the machine doesn’t have that capability.”1 Overall, technology should remove baseline tasks so you and your team can focus on building deeper relationships with your clients.
Blending robust processes, relevant technology, and human experts can help insurance brokers streamline their operations, enhance client relationships, and ensure that their workflows are as efficient as possible. The right mix allows you and your team to focus more on providing personalized service and growing the business. Done correctly, technology can help you solve problems you didn’t even know you had.
Come to Insurtech Connect Vegas!
Join Brian Refici, Vice President, MarshBerry at the ITC conference in Vegas and let’s discuss your thoughts on automation and what trends you’re seeing. Or contact Brian ahead of time by email or at 440.769.0321.
