There was much talk of agents being replaced by AI
(Artificial Intelligence) and/or robots and even toppling of a big insurer when
the technological disruption first gained momentum in the insurance industry.
However this yet to materialise as detailed in the qualitative interviews with
industry leaders. While technology has had an impact here, much of it was deployed
to automate repetitive mundane tasks in backroom operations. Some of the
technology providers have also decided to work with, instead of against the
incumbents; providing the company with sophisticated data analytics and
frontline client onboarding software for the agency force.
Despite the signs that agents will not be replaced in the
foreseeable future, the only constant is change and it is inevitable that
technology will continue to pervade and affect how consumers behave and this,
in turn, drives how things will be done in future. The insurance companies and
their respective agents must not cease to innovate and keep in touch with
changes in the consumers’ mindset.
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| Tripartite Relationship |
Insurance Companies
Most of the insurers in Singapore are
forward-looking and the senior executives who were interviewed claim to have
their finger on the changing pulse of technology. While the main bulk of offered
by ever-improving technological advancements. They could integrate hi-tech and
hi-touch in with these strategies:
- Combining Online with Personal Touch
With the trend of buying general
insurance online, companies can offer consumers to buy these plans online at a
discount and have an insurance agent assigned for after sales service. With
this arrangement, all 3 parties benefit; consumers are able to buy online
conveniently and enjoy a discount, the agent still earns a commission from the
sale (albeit a lower one) and may follow up with the customer for upselling
opportunities, and the company has someone to handle after-sales service
without adding more resources to support the online sales channel.
- Using Data Analytics to Predict Buying Patterns
It has been shown that it is much easier
and cost effective to market to existing customers than to develop new ones
(Chen and Popovich, 2003). With so much customer data, insurers can harness
data analytics to predict which customers are likely to buy next and the type
of policy that they may be interested. These reports can be made available to
the agents for follow up.
- Tech-Enabled Sales Force
Insurers should equip their agents with
effective POS (Point of Sale) software that is engaging and efficient. This
software should not only be for on-boarding but also provide pertinent
information at the agents’ fingertips. Clients are more likely than ever to do
their research online before meeting their agent for a discussion and the agent
is also expected to provide advice on not just insurance matters but also its
related subjects. This tool must be all-encompassing yet user-friendly.
- Marketing People and Products
It has been well-researched that
services branding is dissimilar to product branding (Moorthi, 2002. Padgett et
al, 1997) and it is more difficult to achieve brand differentiation (De
Chernatony et al, 2006) especially in a heavily-regulated industry such as
financial services. From the quantitative research in this report, consumers
place agents ranked third after product features and value; but ahead of
reputation and after-sales service when making their insurance purchase
decision. Without a doubt, agents contribute significantly to the brand equity
of the insurance company. Insurers should consider including their agents as
part of their marketing and branding; promoting an agency force that is
competent, caring ethical and professional to differentiate themselves from the
competition.
- Customer-Centric
There are numerous examples of companies
that went out of business when they become out of touch with what the customer
wants. The insurance industry can ill-afford to and must stay on top of
changing customer demographics and psyche. It can start by being approachable
and easy to contact. Customers must be given options to stay in touch, their
way. Be it by phone, email or on social media, insurers must stay on top of the
game and break down communication
barriers, not erect new ones. Policy contracts should avoid too much legalese;
insurers must be transparent, fair and honest in dealing with customers.
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