My fellow agency leaders the state of the union (of agency technology) is… not bad, actually.
From a high-level perspective the future of agency technology is definitely looking up. While we still exist in a world of limited system options there has been movement across several fronts that is clearing the way for a brighter future.
The dialogue and vocal support for a digital business model are more present than ever. From broker-carrier connectivity to fully paperless transactions to true digital signatures parties across the insurance transaction are working on collaborative solutions that will fundamentally change the way our business is conducted.
The most noticeable improvement over the past year has been the number of agencies actively engaging in strategic technology discussions. While there are still agencies that prefer to think of technology as email and telephones this is rapidly becoming the old way of thinking. Through vehicles like the Council’s CIO Working Group many agencies are elevating the way they use technology; moving away from the narrow focus of computers and networks into the world of customer-facing technology and data driven insight.
This shift in philosophy will translate into enormous success for those firms on the leading edge. By engaging with customers in a way that is convenient, timely and intensely human agents and brokers will solidify the very reason for our existence. There is no better way to transfer risk than with the trusted counsel and expert guidance of an independent agent and soon our enhanced interaction with our customers will provide an even more satisfying experience for them.
The needs of agencies are changing because the expectations of our customers are changing. Processing quotes and bind orders is no longer enough. Hand delivering paper policies is no longer enough. To survive and thrive in the next generation of business our agencies need to provide always-on access to meaningful information in ways we’ve never dreamed. Dedicated apps? Yes, please. Inquiry to bind in minutes? Only if you actually want me to bind coverage. Easier access to my information? You had me at hello.
We can’t do it alone. We are agents and brokers, not software companies but there are a few who are listening.
Agency Management Systems
Often the subject of furious debate this single system holds enormous sway over the success of our agencies. While none of the agency system vendors have launched a significantly retooled version of their systems lately the space is definitely getting more interesting.
How so? They are listening, adapting and committing resources to updating the way their systems handle our business model. Lets face it, most of the available systems were conceived and developed decades ago. While there have been improvements and technological advances they still operate on a model designed to make the manual procurement of insurance more efficient. This is no longer enough. We’re changing the model and they are taking notice. Customer experience is vitally important to the future of agencies. Through both acquisition and new development agency system vendors are incrementally improving our ability to provide a better customer experience. We aren’t there yet but we are on our way.
Added features are just the tip of the iceberg. Where agency systems were once built like impenetrable towers these systems are now more open and connectable than ever; providing the ability to integrate with a variety of systems both inside and outside of our industry. No longer forced solely to beg for new features this opens the door to our agencies buying and building third-party software that can directly interact with our customer data and internal workflows. This is a major improvement over the agency systems of a decade ago.
Carrier Connectivity
While the Lexis Nexis Insurance Exchange ultimately failed to reach escape velocity the concept of a common agent-carrier collaboration space has become even more engrained in our collective consciousness. When it comes to innovation some attempts will not survive but the lessons learned drive the next attempt. When we do finally land on a digital agent-carrier collaboration space the effects will be dramatic.
Both Vertafore and Applied Systems have demonstrated their desire to work on the digital divide separating agencies and carriers. Whether through a product approach or acquiring and retooling aging connectivity models there is a flurry of activity and agencies will ultimately be the primary beneficiaries.
These vendors can’t succeed alone. This is an industry-wide problem that will require an industry-wide solution. More parties are joining the cause and each successive attempt brings us one step closer to a lasting solution.
Stay the Course – We Aren’t There Yet
Other industries have already realized incredible success in both making business digital and focusing on customer experience. There’s a long road ahead for us but this path doesn’t require enormous amounts of risk. It’s been traveled before. By listening to our customers, demanding more from our vendors and elevating the role of technology at our firms we can all share in this brighter future.