The insurance industry faces new opportunities with the coming wave of insurance technology or insurtech. Ultimately, the growth of digital transportation in the industry has been slower than in other sectors.
Certain factors contribute to this. First, there is the long-established history of the industry. The insurance industry has worked and operated a certain way, and change has been difficult. Then, there needed to be more standardization across the field. The technology developed slowly. Finally, there was an issue with a widening age gap and industry experience. Younger people are getting into the industry and clashing with the veterans. Therefore, it highlights the difference between the “old school” mentality and the new-age and new concepts that younger people might bring.
Rather than ignoring what’s on the horizon, technology can change MGA systems to make them more efficient and cost-effective.
With insurtech, MGAs, agencies, and carriers gain access to digital experiences that quickly adapt to the insurance industry’s needs. It can help with regulatory compliance, workflow, and cost reductions. There are several elements to implementing insurtech across the industry.
Addressing the current processes is the starting line for insurtech, as you can improve efficiency with a digital insurance management system. By moving to a digital experience, new or inexperienced users can more easily integrate into the industry’s best practices. The best method to do this is by building oversight to eliminate errors and using redundancies to help with training and uniformity.
Because digitization simplifies and streamlines many processes, it creates more efficiency with fewer staff. Digitization can remove repetitive tasks and automate reporting, reducing the need for manual entry or attention to minor issues. It frees up the staff to work on more pressing client needs or allows you to scale back on your workforce. Digitizing the processes also allows for scalability and repetition across various partners in the industry by centralizing information away from legacy knowledge systems.
Much of the initial hesitancy with adopting digital processes in the insurance industry came from the unknown with regard to applications, compliance, and much more. As insurtech evolves, there are expectations that artificial intelligence will play a significant role in automating tasks like contract recommendation or underwriting. Insurance carriers can operate on a larger scale with a smaller workforce when relying on business intelligence for MGA systems.
As the industry continues to discover what is possible through technology, the focus may turn toward scalable systems. MGAs, carriers, and other entities can experiment with small and large-scale applications for things like Insurance Agent Portal Software. The evolution of insurtech using AI could bring together the fragmented sectors and components of the insurance process efficiently and accurately.
Insurtech can bring uniformity to the insurance industry, paving the way for mergers and acquisitions between small insurtech entities and long-established insurance carriers. However, these small companies utilizing insurtech may demonstrate an ability to compete with larger companies more efficiently using the tools and programs at their disposal. It can change the face of the industry.
There is no doubt that insurtech has a bright future. From automating processes in MGA systems or creating more competition in the field, those in the industry will benefit from the transformative power, and innovative approach insurtech brings.
Say goodbye to outdated systems and begin looking at a solution that will provide what you need to increase productivity, decrease costs in the long run, deliver frictionless transactions, and remain competitive in today’s environment. For more information about VRC’s Verity software and to book a demo, click here or contact us at 541-209-0700.
