How agents can use digital to personalize sales

An employee attends to a customer inside a Union Bank of the Philippines paperless branch called The Ark in Makati City, the Philippines, on Tuesday, April 19, 2022. Union Bank offers a wide range of financial and related products and services, with its core business being corporate finance and consumer finance. Photographer: Veejay Villafranca/Bloomberg
An employee attends to a customer inside a Union Bank of the Philippines paperless branch called The Ark in Makati City, the Philippines, on April 19, 2022.
Veejay Villafranca/Bloomberg

Insurance has never been the most approachable industry. Its opacity, combined with burdensome and convoluted paperwork has given it an air of mystery bordering on suspicion. In fact, according to a recent study across the United Kingdom, France, Germany, Italy, Japan and Switzerland, only 21% of customers consider insurers trustworthy, leaving an overwhelming 79% of policyholders around the world wary of the very ones responsible for their security.

It is not so surprising then that customers have traditionally turned to agents when purchasing policies, for a ‘personal touch.’ However, those agents, who carefully cultivated relationships, are now at risk of displacement due to the large-scale digitization of the insurance industry. This diminishing ability of agents to personalize the insurance process was only exacerbated by COVID-19, with 42% of consumers reporting fewer in-person meetings with agents since the pandemic began.

However, there is a silver lining to accelerated digital migration. If agents are able to adapt to this new normal, digitization can yield opportunities to provide more personalized experiences than before – all it takes is an informed strategy and a few practical steps.

Track new products and evolving market trends
How consumers discover and purchase new products is rapidly evolving. The move to digital is just the tip of the iceberg, and agents who want to keep up with the times and scale their operations must be attuned to how times are changing.

8.6% of adults in the U.S. are considering buying or switching life insurance policies in the next six months. Rather than wasting resources trying to nudge the remaining 91.4%, agents must use the digital tools and online channels available to them to reach as many of these primed-to-purchase customers as possible. Agents would also be wise to use their resources to stay up to date on policy and underwriting information, so they can quickly recommend the perfect policy after making customer contact.

To boost the chances of completing any given sale, agents must also be able to offer online and mobile accessibility for all relevant processes – filling and signing insurance applications, collecting fees remotely via credit card and digitally modifying policy details based on each customer case. Only agents who are acutely aware of shifting consumer tendencies and the tech trends that follow suit will be able to tap into the full power of digital insurance. 

Data to build trust
The need for a keen, data-based understanding of customer needs stretches far beyond the initial sales process – it fosters trust and bolsters personalization at every stage of the agent-consumer relationship. A vast majority, 80%, of insurance customers want personalization from providers, an experience that can only be built with the use of customer data.

Digital tools make it easier than ever before for agents to conduct surveys among their client base and gain access to customer data through insurance agencies in compliance with privacy laws. In doing so, they can collate data to establish and define their respective customer pools based on hobbies, habits and lifestyle choices that impact policy-relevant risks. Say a customer indicated that their favorite pastime was hiking – their agent could prepare to offer policies that are appropriate for physically active, lower-risk individuals.

The impact of such data-based personalization is twofold: it communicates a sense of care to potential customers, and it shows that agents are using digital tools to engage with clients’ needs and problems – something 83% of international customers now expect.

Proximity matters
The pandemic (and the digital transformation it catalyzed) has put new distance between everyone. But despite the dwindling number of in-person meetings, there is still room for agents to cultivate a “local” brand presence and strengthen ties with current customers while continuing to build out their digital client base.

Positioning oneself as a local can have a real impact on marketing success and word-of-mouth credibility – as the pandemic continues to wane, 68% of Americans still want to prioritize support for their local businesses.

When surveying clientele, agents should strive to gather data at the micro and local levels while keeping the big picture in mind. By asking neighborhood businesses, trusted local leaders and everyday residents about what they want out of their insurance; agents will not only carve out a sustainable, dependable space within the community but be able to tailor policies to the community’s needs.

Migration, not separation
Digital migration is a very real trend that business leaders across all industries – even one as steeped in tradition as insurance -- must confront. But the assumption that digitization will be the demise of independent insurance agents is misguided. When treated as complementary to each other, there is no limit to the potential for both national and localized personalization afforded by digital connectivity.

By leveraging digital channels and new technology to gather customer data, build a local presence and stay educated on the broader industry, independent insurance agents can ensure their relevance in the digital age and beyond.

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Agents Customer data Digital Transformation Customer experience Data Analytics Customer experience 2022
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