Small agencies should feel comfortable investing in InsurTech.
In our fifth annual workforce survey, we asked agencies about their ongoing experience with InsurTech. We asked about what they used to communicate with clients and to rate and write policies. We also asked how they were staying current with the ever-expanding technology available to them.
For the question, “How well is your agency staying up to date with technology?” we found that smaller agencies are not optimizing technology at the rate their larger counterparts are. In fact, 16% of small/medium-sized agencies (1-25 employees) answered “Not at all” or “More misses than hits” when it comes to their use of tech.
For small agencies, owners usually wear many different hats. They're the marketer, salesperson, manager, trainer, HR strategist, and are more than likely also the “computer whiz.” In these situations, staying current with technology may be a low priority because there are so many other things to do.
Also, the sheer number of InsurTech options makes it difficult to find and implement the best solution for an agency. It’s hard to know where to start. And, if they get it wrong and choose poorly, they have made an expensive mistake. The process and risk keep some small agencies away from current technology. And that’s unfortunate because there are solutions designed especially for them that are not difficult to implement and get up and running
In the InsurTech space, there is a technology solution designed for every insurance issue, but some come with a longer integration period than others. There is always a learning curve. However, agencies that have been hesitant to explore new solutions are missing out on some fantastic innovations.
The best way to find, analyze and ultimately adopt new software is to look carefully at the problems that are getting in the way. Once that’s done, find the tech solution that is designed to address the problem. Technology is only a tool and won’t fix or build everything—a really good hammer does not do the same things as a really good wrench. Knowing what you’re building and what the end goal is makes finding the right tool so much easier.
Many agencies start their tech journey with a solution to track sales, but if everyone in the agency has a different sales process, it’s going to be difficult to implement a successful tech solution. Software that is designed to improve sales won’t be effective if everyone is doing their own thing.
More successful agencies are careful to design systems, analyze data, and standardize processes so they can see progress or growth as it happens. They use tech that syncs with what they are currently doing, and they build from there. It’s so important that agencies align themselves to a process that makes sense to a computer so the computer can produce data that makes sense. Tech can’t fix a broken system, but it will absolutely enhance a system that everyone follows.
Small- to medium-sized agency owners often feel like they are the gatekeeper for the technology that enters the office. This means they are doing the research, making the software purchasing decisions, and keeping everything updated and working properly. This responsibility can be overwhelming for someone who handles everything else or is not interested in tech in the first place.
In agencies of all sizes, there is often a person who has an affinity for technology; someone who knows which buttons to press and which wires to cross. Let this person run with the tech—not without rails or guidance, but with the goal of keeping the agency plugged in. Give the techie the freedom and responsibility to do something cool, something innovative. Give them the reins and watch what they do.
Allowing a tech-minded person to manage the agency’s technology has a positive effect on keeping a business current and humming smoothly. It also helps solidify a relationship with the more tech-savvy employees within your agency, which is a benefit for everyone.
No agency has to go without tech. In today’s market, there are solutions purpose-built for the insurance industry. We encourage the 16% of agencies who feel they are not staying up to date to keep searching for InsurTech that works for them. No one should be left behind.
May 16, 2022