5 Cornerstones for Advancing the Insurance Industry’s Digital Technology Strategy in 2015

It is a brand new year, and for many people that means the promise and potential of resolutions, goals and aspirations. This is the time to plan, to dream, to improve. This can be said for individuals looking to shed a few unwanted pounds or a business contemplating a long-needed IT project. I am an insurance technologist, and although some may argue that is an oxymoron, technology is unquestionably altering the fabric of our industry at a pace never before seen.

Our industry has long been maligned for its lethargy in leveraging new or even commonly accepted technologies, but today’s modern marketplace and tech-savvy consumers are demanding change. At first blush, one might think that the buying habits of consumers are responsible for the recent acceleration of change, but it is also the expectation of modern knowledge workers, who not only expect technology in the workplace, but are much more effective when armed with it.

That brings me to the inevitable questions that come with the birth of a fresh New Year. As someone who has worked to digitalize this industry for more than 20 years, I am often asked, “What do you see as important for carriers and agents in the coming year?” This question may prove to be more relevant today than at any time in the recent past.

In 2015, it is less about what is predicted to happen and more about what is already happening. The digital community and resulting virtual economy are firmly in place. For carriers and agents who have already positioned their firms to better leverage the modern economy, 2015 is simply a time to continue the good work. It is a build-out or refinement year.

But what about the majority of insurance businesses that unfortunately find themselves behind the curve? The message is clear and simple: It is not too late.

The more difficult questions become, “Where do I start?” or “Where should I focus my limited resources?”

To answer these questions, I like to review certain cornerstone, foundational technologies that must be in place to properly take advantage of the much broader technical landscape.

End the Multiple-Password Nightmare

Multiple passwords and the inefficiencies associated with their management continue to be the single biggest encumbrance to progress. This is especially true within the independent insurance channel, where the ability to efficiently represent multiple markets and services is at the heart of the value proposition. Enter ID Federation Inc. and the SignOn Once initiative. As a response to the daunting task of solving the multiplicity of password challenges, the industry has rallied to form a nonprofit consortium dedicated to addressing the problem. The goal is to offer agents the ability to sign on once. So what should one do to take advantage of SignOn Once?

Visit IDFederation.org, where you can find the information you need to better understand the initiative. Carriers need to get involved — if they aren’t already. Resources are always limited, but agents understand the importance of this issue and are looking to their partners for help.

Carriers need to join the ID Federation. They then need to work with the vendors to leverage the savings and convenience provided by single sign-on. Again, there is more information on the initiative at IDFederation.org.

Embrace the Mobile Office

There is no denying the fact that we are rapidly becoming a mobile society. The proliferation of mobile devices has forever changed our social and economic landscapes. All businesses should be looking to better serve modern consumers anywhere, anytime. That being said, don’t discount the needs of modern knowledge workers. Arming our industry’s workforce with mobile technologies not only untethers them from their desk, but also affords them the opportunity to leverage information at their fingertips. For carriers who are working to implement mobile strategies, I encourage them to contemplate the need to be able to push those services to the agents for distribution through their (or their chosen vendor’s) systems.

The Social Medium Can Have Large Impacts

Everyone would likely agree about the relevance of digital social networking. It is not so obvious how to actually leverage the opportunity. The rules are clearly different, especially with regards to the consumer’s tolerances for conventional marketing through this new channel.

A big part of the independent agent’s value has always been the ability to establish and leverage their community and the relationships that make it up. There is no doubt the definitions of community and relationship have both vastly expanded and consequently, so have the opportunities. Everyone should have a social strategy, and the first step of that strategy should be to “be present.” Whether it is on Facebook, Twitter, Instagram, LinkedIn or Google+, it is like a door-prize — you must be present to win.

Digital Signatures in the Digital World

Once you have solved the password issue and deployed a proper mobile and social strategy, the next big concern facing the insurance industry is the ability (or lack thereof) to properly support standardized electronic forms and signatures. These, too, should be considered foundational technologies. If we have armed our distributors with mobile devices, generated interest through building social relationships and still require customers to come in and sign paper forms, we have clearly missed the point.

Analytics and Transparency

There has always been power in information — this is no new revelation. What is new, however, is the shear amount of information available through new technology and the transparency provided by the unprecedented ability to digest that information. Insurance in particular is a very process-oriented business, and being so, it generates a huge amount of information. The aptitude to leverage that information, whether as a carrier or agent, often separates the leaders from the pack. The good news is that vendors and information-providers are continuing to improve the way the information is provided — making it ever more intuitive.

There is nothing that I mentioned that is necessarily new or revolutionary. There is also no question there are some more exciting new technologies on the horizon. But before one can even contemplate these new, sparkly things, the foundational technologies have to be in place. Although it might seem like it, it is not too late to start laying that foundation.

Topics Agencies InsurTech Tech Market