Life Insurance Industry Changes Highlight the Importance of IT
Change over time is commonplace in any industry. The insurance industry in particular finds itself subject to changes that greatly impact business as usual. Regulations, soft markets, and evolving technologies all take their toll on insurance business processes.
Historically known to have a conservative attitude towards change, life insurance companies have slowly but surely opened their doors to incorporating advanced technology into their business processes. Multiple factors are at play behind the industry’s change in attitude, but underneath the shift is a growing realization of the importance of technology in maximizing the potential of life insurance producers.
Let us take a closer look at the reasons why life insurers are looking for more advanced business technology.
Changing product demography. There was a time when life producers were merely focusing on life insurance products. But today, many producers and agencies are diversifying to promote financial products as well. As this trend continues, carriers need flexible systems with service- oriented architecture (SOA) that can accommodate the complexities inherent in compensation planning for diverse financial products.
The new workforce. Younger producers are technology-savvy and are not reluctant to switch loyalties if they are not satisfied with their work environment. Carriers need to look for the right tools that not only engage the interest of this segment but are also usable enough for long-standing producers to embrace.
Access to information. Producers expect online portals or systems that can provide instant access to information for use during customer follow-ups, in addition to allowing them to monitor quota targets and commission payment cycles. Carriers need to look for a system that combines all this information in one place, and communicates it effectively to agents.
Real time responsiveness. The amount of time spent in performing each task is a huge factor in influencing agent’s motivation. The current generation of energetic workers won’t tolerate a slow moving and time consuming process. Carriers need to ensure that the systems in place not only provide instant access to information, but also speed up policy administration for the carrier.