Driving growth by selling insurance products via digital channels

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Since the start of the pandemic, there have been dramatic changes in how people and businesses buy and sell services. Salesforce data shows that 80% of B2B buyers have high hopes for companies’ digital capabilities following the disruptions associated with the pandemic. In the same study, 78% of business buyers said they use more than one device to complete a single transaction, and 73% said they expect cross-channel and cross-agency interactions when interacting with vendors.

In terms of individual shopping habits, a recent Accenture report found that 49% of consumers are willing to switch to brands that offer online product advice and “shop everywhere” when transactions flow seamlessly across digital channels. In an insurance market survey conducted by Accenture, 48% of customers said they preferred opening a new account or product on their computer, while 34% said they preferred using a mobile app. Customers—both business leaders and individuals—are looking for simpler, friendlier, and more convenient digital experiences.

This does not mean that the insurance agent channel will disappear anytime soon. As my colleague Scott Stice says, “Agents still have the lion’s share of the market and remain indispensable to insurance.” So it’s still important to make sure agents have the right tools. But insurers that don’t use digital channels are leaving money on the table.

Companies with mature digital sales channels have a few things in common. They can interact digitally with customers to a large extent, they can take full advantage of recommendation engines and a customer-centric online store, and use tools that allow them to get a true view of customers and plan for additional, reliable investments based on On this. data. They also have the most standardized and automated sales processes and plan to invest heavily in this area, and they already have closely collaborating front office units.

For insurers looking to create a more efficient digital channel, I recommend developing key capabilities, including:

Comprehensive digital customer experience. To engage with individuals and small business owners, you need a connected set of digital tools and additional channels for every step of the sales process.
Proactive individual recommendations. Using the recommendation engine can help you direct customers or agents to the right products and coverages, which improves the quality of service and increases customer satisfaction.
Data-driven predictive customer analytics. Leaders are already using comprehensive customer insights and customer insights, using both their own and third-party data to target offers.
Automated, standardized sales processes. Automated processes mean cost savings and increased conversion rates by providing consumers with a simple and fast buying experience.
Cooperation with the front office. Leading companies promote close collaboration between sales and marketing, front office and back office.

While digital opportunities are currently important for insurance companies looking to connect with an increasingly digital consumer, keep in mind that there are generational differences: Millennials and younger consumers are more interested in digital offerings, but people aged 55+ are slowly becoming more comfortable.

Switching customers to digital channels is an opportunity to cut costs, expand distribution coverage, and increase customer satisfaction and engagement. Insurers that do not actively use digital sales channels risk losing customers to those carriers that have mastered an omnichannel customer experience that spans the entire journey from first contact to purchase and customer service.

In my next post, I’ll look at how you can reimagine customer service to drive growth.

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