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Of the $785 billion in P&C premiums sold in the U.S. in 2021, approximately 62 percent were placed by independent agencies. This is even higher number than 2020 59% delivered by agencies.
The integration of AI and technology in the insurance sector is projected to enhance agents' productivity and efficiency. McKinsey estimates that AI technologies could add up to $1.1 trillion in potential annual value for the global insurance industry.
McKinsey also says, that by 2030, insurance companies can potentially boost productivity and cut operational costs by as much as 40 percent. At the same time, they have the opportunity to enhance the quality of service they provide to their customers.
What diminishes agent's productivity? How to take care of it? We'll cover it in this article.
Key Takeaways:
- Agent portals centralize operations, reducing time spent on administrative tasks.
- Automation features allow agents to focus on client relationships and sales.
- Advanced technologies, including machine learning, enhance decision-making and personalization.
- User-friendly design and customizable features improve agent productivity.
- Integration with other systems fosters collaboration and ensures data accuracy.
The Productivity of Insurance Agents Facing Insurance Technology Revolution
In the world dominated by AI, machine learning, chatbots, one might think that human insurance policies sellers become obsolete.
This is very far from the truth.
However, insurance carriers that know, how to empower their agents utilizing the technology are the true winners here.
Why insurance agents productivity is key?
Missed cross-sell and up-sell opportunities
Attracting new customers costs 3 to 5 times more than expanding business with existing ones. Larger personal lines insurance carriers typically spend between 3% to 6% of direct written premiums on advertising.
Cross-selling and up-selling is a great way to increase revenue without increasing marketing expenditures greatly. You can do it either by extending coverage or insuring other risks.
Time wasted on non-essential tasks
About 33% of insurance sales tasks can be automated, which can dramatically improve agent productivity.
19.8 percent of business time – the equivalent of one day per working week – is wasted by employees searching for information to do their job effectively.
Employees waste 360 hours every year searching for information within their business, absorbing 26% of salaries.
This is basically their salary being burnt.
Churn and Risk of Burnout
The turnover rate for customer service representatives (CSRs) in the insurance industry ranges from 30% to 45%, significantly higher than the average for other occupations. This high turnover indicates a challenging work environment that can lead to burnout and dissatisfaction among agents.
Replacing a CSR can cost an insurance company six to nine months of the agent's salary due to recruitment, onboarding, and training expenses. For a 200-person CSR team, replacing 30% of the team could cost between $1.17 million and $1.76 million annually, in addition to the regular wage bill.
How to Boost Insurance Agents Productivity?
According to the available data, there are approximately 927,600 licensed insurance agencies and brokers working in the United States as of 2022. The global insurance brokers and agents market size was worth around USD 259.39 billion in 2022 and is predicted to grow to around USD 486.26 billion by 2030.
The cake is enormous, and in this case instead of cutting a bigger piece for yourself, you can make it grow, with solutions towards agents productivity.
Agent Portal - Modern Insurance Software
- Workflow simplification: Consolidate tasks and tools in one place, no more switching between multiple systems, save time and reduce errors.
- Automate routine tasks: Agent portals can automate data entry, document processing and appointment scheduling, so agents can focus on high value activities.
- Real-time data: Give agents instant access to client information and policy details so they can respond quickly to inquiries and provide personalized service.
- Analytics: Advanced analytics in agent portals allow agents to track metrics, see trends and gain insights to refine their approach.
Agent Wellbeing
- Training and support: Give agents the skills and resources to succeed in their role and boost confidence and job satisfaction.
- Work-life balance: Encourage agents to take breaks, set boundaries and maintain a healthy work-life balance to prevent burnout and overall wellbeing.
- Professional development: Invest in agent growth and provide opportunities for skill development to increase engagement and motivation.
- Recognition and reward: Recognize agents’ achievements and milestones to boost morale and a culture of appreciation.
Set Goals and Track Progress
Measuring agent productivity requires setting measurable objectives and tracking progress.
Here’s how:
- Set SMART (Specific, Measurable, Achievable, Relevant, Time-bound) goals for the agency and individual agents.
- Implement a monitoring system to track lead generation, customer interactions and new business.
- Have regular check-ins to review progress, provide feedback and adjust goals or action plans.
- Use agent portals to set personal sales goals, track progress in real-time and compare to benchmarks
Agent Portal Benefits
Agent portals have many benefits for insurance agents and brokers, to help them work more efficiently and focus on the core business.
Simplifying daily tasks
Agents can manage multiple tasks like policy administration and claims processing from one place.
Centralizing everything reduces time spent switching between multiple systems, so agents can work better. Having all tools and information in one place simplifies workflows and reduces errors.
Automation
Follow-ups and data entry can be automated within the portal. This reduces the administrative workload on agents so they can spend more time with clients and new business. Automation improves efficiency as well as accuracy in risk assessment and policy management.
Real-time data
Agents can get instant access to client, policy and claims information. This instant access allows for quicker responses to client inquiries and more personalized service. More visibility into client data helps agents to tailor their offerings to individual client needs and build stronger relationships.
Agents and brokers progress and performance can be tracked without them feeling stalked, as the tool is helping them too.
Plus, there’s a dashboard for sales executives to see if any agent or agency is dropping in efficiency. They can contact that agent or agency to check what’s going on and fix it.
Integration
These platforms can connect to existing systems such as CRM tools and analytics software. This integration ensures information flows smoothly across different applications and reduces data silos and overall operational complexity.
Customer service
With access to client history and preferences, agents can have tailored interactions. Responding quickly and accurately to client needs boosts satisfaction and loyalty in a competitive market.
User experience is key in agent portal design.
An easy-to-use interface means agents can get around the platform quickly and find what they need without hassle. A user-friendly design means adoption and maximizes the portal’s productivity benefits.
Choose Decerto's Agent Portal as a Insurance Solutions for Your Insurance Agents
When it comes to enhancing your agency's productivity and streamlining operations, choosing the right technology partner is crucial.
Decerto stands out as a leader in providing cutting-edge Agent Portal solutions designed to empower your agents, simplify workflows, and boost client satisfaction. With our commitment to innovation, seamless integration capabilities, and user-friendly design, Decerto ensures your agents can focus on what matters most—building relationships and driving sales.
Partner with Decerto today and transform the way your agents work, helping them to achieve more with less effort. Let’s take your agency to the next level together.
Ready To Elevate Your Insurance Software?
Connect with us today to learn more.
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