How the insurance industry is changing and what you can do to stay in business

Industries are changing every day. Factors that have recently brought on the biggest changes are customers and technology. The changing and growing of customers and technology has had a major impact on the insurance industry as we know it, and the impact shows no sign of slowing down.

A recent Huffington Post article wrote: “The way the insurance industry makes money, profitable as it may be, must be altered to better serve consumers. Far from wishful thinking, this is absolutely necessary if the industry is to survive a coming onslaught from innovative companies trying to disrupt insurance. Upstarts are rethinking the insurance game from the ground up, and the industry needs to follow suit.”

The Huffington Post is right. Gone are the days when customers would come to an Insurance Agents office or call them on the phone for information. Now callers are filtered directly to the agent best suited for their needs through inbound calling websites, insurance leads are purchased or found through the internet and a great deal of your business can be done virtually. As the post said the game is changing and the industry needs to follow suit.

This changing of the game and increase of insurance Upstarts has also lead to customers: a. looking at different ways to save money, and b. changes in what customers are insuring.

In my post, 3 Tips for Selling to Millennials, I talk about how to market to this new age group and how their insurance needs and money saving goals are not based on “traditional insurance values.” Gone are the days when you wanted just home, life and care insurance. Now groups like Millennials and their counterparts want umbrella insurance, renters, motorcycle, pet and they want to make sure their technology is covered too.

It is a combination of these new insurance needs and the search for cost reduction that are also having a major impact on how the insurance industry markets to clients. As I said, customers no longer need to call an insurance agent to find the best pricing, instead it’s right at the customers finger tips. Offering free insurance quotes online may make or break a new customer and, as I said in my post, it’s a great form of marketing, the type of marketing people are looking to these days.

This change in marketing has led to customers wanting a better more fulfilling customer experience, one with ease, technology and communication on their terms. And, as the Huffington Post writes, “Once insurance is purchased, the experience must remain exceptional.” These new tech savvy customers want to hear from their agents, they want communication, but not in the traditional sense. Remember most insurance plans are only 6 months to a year, so agents need to think long-term if they want to keep their renewals up. Building relationships with your clients and finding ways to make your agency standout from the others could mean the difference between an auto renewal or not.

In conclusion, I will turn to, as they put it best, “The time has come for those insurance businesses who want to be survivors to develop and execute their plans in order to remain relevant in the new insurance world. “ What has your agency done to move with this ever changing industry? Let us know in the comments.


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