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Key Research in Insurance Technology Has Major Implications for the Future of Your Agency.

May 26, 2016  |  Posted by Nick Peterson  |  2913 Views

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Techsurance

Our job at MacNeill is to constantly look for the best ways to increase sales. We recently came across some undeniable proof that we can’t stop referring back to in our sales meetings. According to a recent study, the future is a bright place for Insurance. We’ve all witnessed it within the last five years; the spikes in insurance sales due to simply getting on our computers and taking the plunge into the intimidating unknown.

After days, months, years of poking and prodding at our resources, we start to see our sales go up and we find that all of our hard work paid off. But all of this was just speculation until recently. Besides the random insurance success stories that we hear about, there wasn’t any finite proof that there is always a light at the end of the tunnel for small and large businesses alike.

But research by Velocify, a consulting company for high velocity sales environments and providers of intelligent sales software, states that there is an immediate correlation between the adoption of technology and increased revenue and productivity for any agency, no matter the size of the business. Basically, what this study proves is that if we all focus our businesses online, we will bring in revenue. In fact, in a 2014 report, 71% of consumers shopping for insurance used the internet to obtain a quote.

The study, appropriately titled Techsurance, evaluated six of the important technologies that agencies will typically use:

  • Marketing Automation Software
  • Lead Management Software
  • Automated Dialers
  • Comparative Raters
  • Agency Management Systems
  • Customer Relationship Management (CRM) Software

An excerpt taken from Techsurance states,

“In addition to revenue growth, productivity gains from the use of technology are perhaps even more remarkable, both in terms of policies sold per producer and policies sold per household. Agencies that used any one of the six technologies evaluated sold between 15% to 43% more policies per producer. Once again, the results were consistent regardless of an agency’s characteristics, including type or size.”

These results clearly implicate that by simply utilizing our resources, we can grow our business by nearly 50%. This does not, however, negate tending to our personal business connections. Although developing bonds with our clients is sometimes more difficult, being personal is what makes being an insurance agency so special. It is important never to rely solely on technology lest we forget where we came from and leave humanity and warmth in our wake. Finding that balance is where things will get interesting for your agency.

At the pace the industry is moving, the most promising path to a solid future for our business is to acquire as much knowledge as we can, and to keep an open mind.

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