Insurtech refers to the use of technology innovations designed to squeeze out savings and efficiency from the current insurance industry model. Insurtech is a portmanteau of “insurance” and “technology” that was inspired by the term Fintech. The belief driving insurtech companies is that the insurance industry is ripe for innovation and disruption. Defined by Investopedia
Why Independent Agents Should Care?
There are a variety of reasons why IA’s need to pay attention to the InsurTechs in todays world. Venture Capitalist are spending incredible amounts on money on these companies. With deep pockets, these companies are able to create and develop software superior to the current marketplace. This will make customers decide between the ease of online insurance vs traditional personalized insurance from Independent Agents. How powerful would it be if Independent agents can operate in both physical and online insurance?
What Can Independent Agent Do About It?
Accept change! By moving into the digital space, IA’s can utilize technology to deliver value to their prospects. Easily engage with prospects and deliver value quickly online, while still maintaining your agencies physical location.
Why Independent Agencies Will Win
One word : Retention. Independent agencies will always hold the advantage over InsurTech’s because of the personalized touch you bring to your customers. With the rise in technology, that personalized touch now includes the ability and access to online insurance. Innovation is now here for traditional insurance!