It used to be that insurance was sold in person, over cups of coffee at the kitchen table. Today, insurance is sold through agents, call centers, mobile apps, online aggregators, banks and myriad other channels. Furthermore, today’s insurance distribution is complicated by three market trends:
- Higher customer expectations.
- Limitations of the agent/broker channel.
- Decreased customer uptake of insurance products.
Most insurers recognize these changes and are investing in their distribution models to better connect with consumers. In fact, in a recent Accenture study of insurance executives, 87 percent said it is “important or critical” to invest in distribution to achieve high performance. But consider this: 63 percent of insurers report that their current distribution model does not offer them a competitive advantage.
Five new disruptive technologies offer an opportunity for insurers to innovate and transform their distribution strategies:
- Social media.
- Digital marketing and gaming.
Carriers can leverage each of these technologies individually. However, integrating and coordinating all of them as a new enterprise capability—a concept we call Holism—can enable carriers to truly transform distribution and sales.
Building a Holism infrastructure
The first step to leveraging Holism is to develop robust capabilities with the five disruptive technologies listed above. Next, insurers must develop an architecture that supports Holism, based on five key components:
- External monitoring of listening posts.
- Interactive content and awareness.
- An enhanced messaging layer.
- Multi-channel CRM extensions.
- An effective decision engine.
Far more than transforming insurance distribution, Holism offers the possibility of transforming the relationship between insurers and their customers—to drive profitable, long-term growth.
To learn more, download Holism: Enabling High Performance Insurance Distribution.