Insuranceciooutlook

Insights into Independent Agencies' Adoption of Digital Technology

Insurance CIO Outlook | Wednesday, June 15, 2022

There are plenty of opportunities for agencies that use front-office automation tools to manage sales and marketing activities.

Fremont, CA: According to a recent report, 97 percent of insurance agencies in the US currently use a management system. The adoption rate increased with the size of the agency, but even the smallest agencies with less than $25 million in annual revenue reported an adoption rate of 94 percent. Organizations should also look for an IAM solution that works in hybrid environments that include both private data centers and cloud deployments. This can help streamline end-user authentication and make it much easier for security staff to ensure that policies are enforced consistently across all IT environments.

Sales Automation Tools

There is plenty of opportunity for agencies that use front-office automation tools to manage sales and marketing activities. Nevertheless, the adoption of stand-alone CRM and/or sales automation applications remains low and is dominated by larger agencies. Of the 25 percent of US agencies that are early adopters of marketing technology, 60 percent have a revenue of $25 million or more, and 43 percent have a revenue of $10-$25 million.

Because so few agencies are utilizing sales and marketing automation tools, the door of opportunity is wide open. Breaking through the clutter is difficult for businesses in a world where people are more connected than ever before, with seemingly infinite access to information. Only communicating with customers when it is time to renew or upsell not only creates a negative impression but can also lead to lost business. Proactively communicating with customers and prospects on a regular basis engages them, keeps the brand top of mind, as well as elevates the agent's role as a trusted advisor.

Advanced Foundational Technology

Applied refers to a foundational agency management system as the "cornerstone of the digital agency." According to a recent report, 97 percent of insurance agencies in the US currently use a management system. The adoption rate increased with the size of the agency, but even the smallest agencies with less than $25 million in annual revenue reported an adoption rate of 94 percent. Agency management systems enable businesses to manage customer relationships, policy and benefits administration, financial accounting processes, sales automation, and document management more efficiently. They are a unified, integrated system that provides a comprehensive view of clients and prospects that anyone in an agency can access and act on – irrespective of role, time, or location. This enables agencies to standardize workflows, connect with insurer partners seamlessly, and discover new business opportunities from both current and prospective clients.

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