These days it’s very simple for customers to jump ship to another insurance provider if they are not getting the service they desire or if they are attracted by a cheaper price. Insurance companies have long cottoned onto this dilemma and have created technology in order to hang onto customers to ensure that they remain loyal.
Going digital is not only a retention mechanism – it has plenty of other advantages too. It offers convenience and for customers to easily interact and engage with their insurance company. And apps that can be downloaded onto smartphones and other devices help insurers keep in contact with their customers and in turn the consumer has all the information they need at their finger tips. They can make claims, add other items to their policies and even apply for more products.
But this evolution in technology does come with some pitfalls, particularly for broker community. Because by having the ability to access products and services from the palm of their hands, customers aren’t thinking of accessing a broker as transactions are conducted by a simple touch of a button. Advice is also often at hand because customers can access chat bots who will answer all the typical questions that need addressing.
So should you, as the broker, feel threatened by direct-to-consumer technology? We, at SchemeServe, don’t think you should because there’s nothing to stop you from creating the same type of technology offered by insurers to keep in touch with your customers. And you don’t even need the type of budget that insurance companies wield.
Change is a good thing, unless of course it cuts you out completely. And while the direct-to-customer technology does that, change can be embraced and adopted. Earlier this month we talked about how in the price vs. service debate, brokers can still come out on top because of the specialist advice they can give.
We relayed the story of Paul and Sophie Weldin who were left with a potential £460,000 bill after their claim by their insurer was rejected. They made the mistake of declaring that their home had five bedrooms instead of seven (the attic rooms were used for storage). But as Ageas only offer insurance for homes up to five bedrooms the claim was said to be void.
We made the point that brokers may not have made that mistake and advised the family accordingly. While advice can be a differentiator, the broker’s ability to ‘self-disrupt’ is also an advantage.
If you’re open and ready for change then it doesn’t have to be such a bad thing. And with software companies like SchemeServe, embracing change needn’t be hard either. When it comes to innovation and you want something done then we can do it. If you want to be a disruptor, if you want to talk to your customers through in multiple ways, if you want to challenge the direct insurers head on we’re ready to help you take it all on!