For years, we’ve been talking about the impending digital transformation of insurance. Well, it’s no longer just coming – it’s here. While digitally transforming your business may have previously been optional, it’s now an imperative to deliver on the core promise of insurance: to safeguard and protect what matters most. The question that remains is will you embrace the digital transformation of insurance or will you ignore it?
Making the Case for Digital Transformation
If we examine how other industries have reacted to digital transformation, you will find that existing industries have either ignored digital transformation, most often to their peril, or they have embraced it, most often to great success despite the fear of change. Think of Blockbuster. The organization did not react or evolve its operating model when digital transformation took place. Blockbuster, which had studio relationships, content and a rich customer database, should never have allowed Netflix to become the king of streaming as this technology became available. They chose short-term profitability over long-term survival. History shows us that those who move swiftly to innovate, to adopt technology, to advance customer experience are the ones that fare the best during digital transformation, enhancing revenue growth and profitability in the process.
Why Should Your Agency Digitally Transform?
Digital transformation strengthens an independent agency’s core value as a trusted advisor and ensures longevity via a more competitive and sustainable position in the marketplace. Specifically, digitally transformed businesses stand to reap rewards related to customer retention, employee retention and return on investment.
- Customer retention
By delivering the excellent customer experiences consumers expect, such as online portals and mobile apps, you create happier customers, which ultimately drives business returns through enhanced retention. In fact, organizations that prioritize customer experience generate 60% higher profits than their competitors.
- Employee retention
To attract and retain talent now and in the future, agencies must make their businesses more appealing to a workforce that expects instant access to information, both in the office and while on the road or at home. Adopting a digital transformation strategy that provides the best software tools to your team will enable higher retention and easier recruitment.
- Return on investment
Digital technology empowers employees to focus their time and effort toward selling insurance and servicing policyholders by reducing manual tasks and processes. In fact, digital agencies realize a 144% higher revenue per employee than non-digital agencies.
The digital transformation of insurance is underway. Becoming a digital agency requires solid planning, resource allocation and effective change management. With a clear transformation strategy, you can build an agency that is more valuable to your customers, your employees and your owners, remaining relevant during this time of change in our industry.