The growth of InsurTech is transforming the insurance industry. Software solutions that can improve the way insurers do business and provide better coverage for customers. This simplifies the tasks of Managing General Agents (MGAs). MGAs can use inventive software solutions to offer exceptional service to policyholders.
Hence, the MGAs can perform efficiently. This is also shown in their work. According to the data from Insurance Journal, the total amount of premiums coming through MGAs was $60 billion in 2021, $9 billion more from 2020. Here are five ways innovative technology revolutionizes insurance for agents and MGAs.
The Growth of InsurTech
InsurTech is the term used to describe software solutions that automate, streamline and simplify insurance processes. The growth of InsurTech has been spurred by several factors, including advances in technology that make it easier for companies to provide more advanced products at lower costs, a desire among consumers for more personalized services, and an increased willingness among insurers to embrace partnerships with third-party vendors.
Insurance companies benefit from InsurTech because it enables them to improve the efficiency of their operations and better serve their customers. For example, many MGAs have implemented claim management systems that let agents submit claims electronically instead of having to call or fax them in. An MGA software can help automate mandate tasks and helps save time while improving productivity.
Agents also benefit from using these systems because they don’t have to spend time entering data into multiple applications. Rather everything can be done through one platform, which saves time & reduces errors.
Consumers win, too, because they get better service with less hassle while also getting higher quality protection at competitive prices. The InsurTech market is booming due to the benefits this inventive insurance software brings. According to the market analysis by Grand View Research, the global InsurTech market, poised at $3.85 billion in 2021, is expected to grow exponentially.
Enhancing Insurer-Agent Relationship With Embedded CRM
CRM is a critical tool for agents, as it helps them manage their relationship with the insurer and the customer. Of course, there’s more to it than that. CRM enables agents to create and maintain relationships with other agents and the MGA.
To understand why this matters, let’s look at some of the essential functions of a CRM system.
- It allows you to track interactions between yourself and your customers. This can help ensure you’re providing customers with top-notch service every step of the way.
- It lets you easily find information about existing clients or potential prospects to grow your business.
Building and maintaining relationships is vital for customer experience (CX). Most companies believe that they are offering a good customer experience. In fact, around 40% of survey respondents gave themselves 9 out of 10 when measuring CX. However, this is not always the case. Innovations with MGA software can help deliver the CX the customers want.
Improves Operations Efficiency With Task Management
Software solutions help MGAs take on more clients and increase profits by improving operations efficiency. They can also reduce staffing costs by using technology to streamline processes, which means that MGAs may be able to hire fewer employees in the long run.
MGAs typically have many different tasks that need to be completed each day. If an MGA has too much work for one employee, productivity will suffer, and errors will likely occur. However, task management software helps you assign the right amount of work for each team member based on their skill set and availability and then track it all from start to finish through real-time reporting tools.
In addition to assigning workloads more accurately and efficiently than ever possible, task management also improves accuracy by automating repetitive steps like receiving approvals or generating reports as they move through each stage of completion. This means less time spent doing manual work instead. This saves money on labor costs and improves customer service since customers don’t need to wait around until someone finishes something before moving forward with whatever comes next for them.
Increases Organization With Documents Management
With Documents Management, MGAs have a variety of options for storing documents. A document management system can be an online repository, a secure location onsite or offsite, or stored in the cloud. Each option has its benefits and drawbacks, and it’s important to find the best fit for your company’s needs.
- Online Repository: An online repository is accessed via a web browser and works by uploading files to be stored there. The advantage of this option is that it doesn’t require additional equipment or software. However, the disadvantage is that you’ll need high-speed internet access, and storage space will be limited based on how many users are accessing it at once.
- Secure Location: This type of storage involves keeping paper records in one place on-site so they’re easily accessible when needed. However, they may not always be readily available when needed due to issues with accessibility as well as theft.
Streamlines Payment With Electronic Payments
There are several advantages to using electronic payments. First, many insurance companies offer discounts for customers who pay their premiums online, so it’s worth checking out. Also, you have more control over your money when you make an electronic payment because you don’t have to worry about losing a check or forgetting to mail it on time.
Finally, some insurers only accept electronic payments, so if you’d like to get the most out of your policy with one of these companies, this is an important step.
There are also several types of electronic payments, an automated clearing house (ACH) transfer from your bank account into the company’s account, credit card payment via PayPal or AuthorizeNet, and even direct debit from your bank account via ACH transfer.
According to research from CBI Insights, digital payments are increasing. Data shows that checks can cost 10 times more than digital payments. Hence, digital payment is now the new trend in the insurance industry.
In conclusion, InsurTech is a game changer for the insurance industry. It enables MGA to stay ahead of the competition, improve its operations and increase its revenues. By investing in innovative software solutions that reduce costs and increase productivity, MGAs can transform into influential business leaders who can offer better products to their customers.