One must have a certain amount of grit, willpower, and determination to adapt if they work in the insurance industry today. In the past decade alone, insurance carriers have been extra challenged to align their legacy values and systems with extremely modern consumer sensibilities. In the wake of the health-related and socioeconomic impact of the COVID-19 pandemic, customers’ attitudes about life and annuity insurance have also changed. They may be more cautious about enrolling in insurance programs than members of the previous generation were. If they do sign up for either insurance or annuity, they seek higher standards of service and engagement than what was once asked from carriers.
A question worth asking yourselves is this: do you want your insurance brand to keep succeeding in the long haul? If your answer is a resounding yes, then the first move that you should make towards securing your future is pursuing life insurance innovation. The time is ripe for you to revisit your life and annuity policy administration system and optimize it for the delivery of digital insurance services. Here are four advantages of exploring new technologies, like a cloud-based life insurance platform, and leveraging them to meet the insurance challenges of the future.
You’ll Equip Your Company to Do Business in the New Insurance Landscape
The first thing you should know about delivering life and annuity products in this era is that your customers value technological prowess in their carriers. The new insurance landscape is one in which many carriers have invested resources into digital insurance delivery. Do you want to be left behind by your peers, or do you want to remain the carrier of choice?
It’s in your best interest to find a platform that can cushion you from the initial stresses of modernization and prepare you for further innovation. There will also be less of a need to keep adapting and re-adapting processes from your legacy system if you choose to optimize now.
You’ll Reduce Your Steep Operating and Compliance-Related Costs
Another strong argument for optimizing your current life insurance system for digital delivery is the amount of money you’ll save from operations. With a new platform, your operations won’t be as dependent on work done in business headquarters. Since vital insurance data will be on the cloud, that technically means that you can operate your business from anywhere. It also means that you won’t lose money from the threat of service interruption, even if you aren’t at HQ.
Modernizing your insurance system will also optimize processes like underwriting. You’ll spend even less time and labor arriving at the correct policy prices for your customers. You may also end up having a better grip over your compliance since it will be easy to manage huge swathes of compliance-related data. Ultimately, you will worry less about paying steep penalties for gaps in your compliance and stay in the good graces of your regulators.
You’ll Synergize with Other Partners in the Delivery of Your Insurance Products
It isn’t only insurers who feel the pressure to innovate. The same goes for other parties in the life insurance and annuity provider network, such as hospitals and clinics that accept health insurance. These institutions are doing their part to modernize their services for your shared clientele. Doing the same will enhance your synergy with them in rolling out your insurance program.
There are several specific advantages to getting on the same page, tech-wise, as your partners in the provider network. An optimized system can help you smoothly advertise and implement bancassurance products with a partner bank. You may also be able to use information technology, like APIs or application programming interfaces, to link up with a healthcare provider’s patient portal. Because of that linkage, it may be easier for your patients to cover their healthcare expenses through your policy online. The possibilities are extremely promising and, most importantly, extremely helpful to your clients.
Your Brand Will Resonate with a New Generation of Policyholders
If you’re looking for a way to reinvent your insurance business as the ideal partner for a new generation of policyholders, optimization is the answer. Optimizing your system gives you the chance to develop new insurance products or rework old ones in a fraction of the time it took before. That means that you may be able to simplify or unbundle all-in-one insurance programs and manage piecemeal policies instead. You may also consider offering the insurance product catalog as a service on its own and launching it through a digital campaign.
Actions like these will attract the attention of a new breed of policyholders, many of whom are tech-savvy millennials who value experiences and investments. You can make insurance look less intimidating than it did for their parents’ generation while also presenting it as something worth spending on given current times. If your brand can resonate with this demographic of policyholders, much of the battle to stay relevant will have been won.
The economy that drives the insurance system may not let up anytime soon, but carriers can choose to be tough, smart, and resilient regardless. The insurance business that stays ahead of the times has the best chances of living on and serving hopeful new generations. If you take the steps to optimize your life insurance system for the current landscape of the industry, you won’t regret it. Explore your options and upgrade to a system that can serve your current and future needs!