Online options have become highly important to consumers interacting with their insurers.
While the importance of digital insurance features was already on the rise by 2019 and earlier, the pandemic has accelerated this trend.
Customers have come to view online features as a necessity instead of a convenience.
According to recent data, agencies that have adapted to this requirement and that have offered the best digital insurance options have experienced a substantially higher growth rate than their non-digital competition.
In a recent survey of 600 independent agents in the United States from Liberty Mutual and Safeco Insurance, the critical nature of using online technology to serve customers was underscored. The results of the research were published in the “Rise of the Digital Insurance Agency” report. It determined that agencies that are digitally advanced experienced a growth rate an average of 60 percent higher than their counterparts without a focus on online options.
Digital insurance features also brought agencies considerably higher revenue growth.
The report showed that among those with the most online features, 44 percent of agencies experienced a revenue growth rate higher than 10 percent. Comparatively, among low digital adopters, only 29 percent achieved that same revenue growth rate.
The report also indicated that these findings have arrived at a time in which this knowledge is vital to independent agents. They have been coping with considerable operational disruptions as a result of the pandemic, while still being required to keep up with the growing expectations of their customers. By knowing precisely what customers value the most and which areas affect an agency’s overall growth rate as well as revenue growth, strategic changes can be made to suit those areas.
The digital insurance trend has been growing for years, but the pandemic has greatly accelerated it.
“Digital is a trend that has been building for decades now, and COVID-19 has simply accelerated the need for transformation,” said Liberty Mutual and Safeco Insurance president of independent agent distribution Tyler Asher in a press release discussing the impact of digital insurance trends. “While we know anecdotally that deeply digital independent agencies generate more leads, operate more efficiently and have happier customers, this research offers a clear picture of the business value digital can provide, which is that high digital adoption leads to faster growth.”