The Digital Revolution of the Insurance Agency Value Chain

by | May 14, 2021 | Blogs | 0 comments

Value Chain

Numerous markets have been significantly transformed by digitalization or the convergence between the analog and modern realms with evolving technology. Insurance agencies’ digital transformations, driven through artificial intelligence, machine learning, cloud services, and real-time communications, are at the pinnacle of allowing agencies to flourish in modernized business operations and will continue to challenge the industry throughout upcoming years.  

What to expect with digitalization, and is artificial intelligence affecting insurance agencies?  

Artificial intelligence has entered a disruptive point in the insurance market, with agencies striving to uncover innovative ways to implement advanced software towards optimizing operations and maximizing performance. 

Throughout the insurance agencies, there are three primary points of change with digitalization:

  1. Software developments alter the manner of the insurer and consumer interaction.
  2. Advanced innovation to automate, centralize, and enhance management structures with heightened productivity and performance.
  3. Digital developments enable time for strengthening of agency service offerings

According to a recent report by PWC, 54% of companies agree that AI solutions they’ve already implemented have benefited productivity, while 67% see the future potential of AI to automate processes and optimize business efficiency and labor productivity.


How will artificial intelligence affect the value chain?

"The advancement of artificial intelligence will not only open additional Agency opportunities but will also push for Faster lead response and sales conversion."

There are several exemplars as to how insurance agency values have evolved as a result of customer experience technology. At a fundamental level, processes have moved to digital, client communications are conducted via real-time conversations via any channel, claims are managed seamlessly, and the compiling of sensitive essential customer and policy information has been advanced to become quicker and more efficient. However, the true effect of digital transformation on Agencies value chain can be summed up in five key attractors:  

  1. Customer experience in real-time  
  2. Consolidation of agency management software  
  3. Cost reductions due to automation and consolidation of software applications
  4. Fast lead conversion through automation and AI/machine learning of processes  
  5. Efficient product set-up for speed-to-market organization

Owing to a shortage of substitutes, customer experience has historically involved direct communication with agency bodies for lead requests or agency details. However, data accessibility and various communication methods have changed significantly with digital advancements and the introduction of online live chat mechanisms. The provision of quality support and Information accessibility is now more efficient, benefiting the insurance agencies and the customer experience. Online solutions such as advanced Customer Experience Management (CXM) cloud-based applications, also provide the means to facilitate new policies and renewal documentation to expedite lead turnover within the value chain.

The increasing application of big data and artificial intelligence has sparked a new era of automation with cost benefits in the future. The transformation decreases human labor in agency operations, such as collective administration and reporting, as well as faster policy application processing. Moreover, structure automated workflows and AI reduce administrative errors & omissions, routine tasks will now be performed with greater precision, and trained personnel gain the opportunities to dedicate time to more value-added activities – the sale! 

AI Machine Learning

Example of using an AI – chat bot and machine learning: 

  1. Chatbots can be used to capture leads via the agency website and provides the means for a lead to a chat with the agency in real-time 
  2. AI can also be used to identify machine learning of documents. This enables automation and sequential ordering of quotes and support documentation from carriers to instantly upload into a customer application for faster delivery to the end customer.

The advancement of artificial intelligence will not only open additional Agency opportunities but will also push for faster lead response and sales conversion. With a greater focus on important and value-driven tasks, the duration needed for an Agency to register a ready established product through insurance authorities as well as the prolonging period before the product can be marketed alongside the agency will be reduced. Furthermore, when modern, streamlined operating systems are implemented, agencies can achieve faster turnaround rates. 

Contact AGENCYMATE Customer Success Team to learn more.


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