Welcome to iLeads Insurance Market Minute, where we bring you the latest, most relevant news regarding the insurance market. Last week you were reading Alternative Data: The Insurance Industry’s (not so) Secret Sauce. This week we’re bringing you:
Four ways to improve critical policyholder touchpoints*
Insurance is a business that runs on numbers, so here are a few to consider:
- 50% of insurance customers say they prefer to engage with their chosen brands through digital channels (and those channels might not be the same ones as even a few years ago);
- Mobile searches that contain the phrase “insurance near me” have grown by more than 100% in the last two years;
- 88% of insurance customers say they want more personalization from insurance providers.
While the phrase “the new normal” can sometimes feel overplayed in these unprecedented times, there’s no denying that global events during the past year have forced every industry to re-evaluate how they can meet the expectations of their customers – and insurance is no exception.
“4 ways to improve critical policyholder touchpoints” – a webinar organized by Podium, a leading interaction management platform provider – will examine the ways in which some insurance companies are finding opportunity in these current times by changing the ways in which they interact with their customers, and why those changes matter.
Comp line largely unaffected by pandemic: NCCI*
The dire predictions on the COVID-19 pandemic’s impact on the workers compensation industry have not come to pass, as 2020 was another profitable year for the line, according to the National Council on Compensation Insurance’s annual State of the Line report.
“We feared the pandemic could be devastating to the workers compensation system,” said Donna Glenn, chief actuary for Boca Raton, Florida-based NCCI at the rating agency’s Annual Issues Symposium 2021, which was held virtually on Tuesday. “We continue to have uncertainties in 2021, but we have fewer of them. Plus, we have renewed confidence about the system’s strength and resilience.”
Net written premium in the workers compensation line fell 10% for both state funds and private insurers in 2020 and direct written premium by private insurers declined 8.7% from 2019 — driven by a 7.3% decline in loss cost, the recession and COVID-19, Ms. Glenn said. However, the line’s calendar year combined ratio remained strong at 87%, though it has deteriorated from 85.4% in 2019, and the line reported $14 billion in reserves at the end of 2020, according to the report.
What do customers want from their insurance partners?*
Natural disasters and emerging risks such as the COVID-19 pandemic have become severe and more frequent worldwide, making consumers more “insurance conscious.” Capgemini and Efma have released the World Insurance Report 2021, detailing how the insurance industry can provide superior customer experience (CX) post-COVID-19 pandemic.
The World Insurance Report 2021 found that over 60% of insurance executives surveyed said the pandemic impacted their firm’s customer acquisition efforts. Meanwhile, 40% noted an impact on customer retention. It also found that 87% of insurers said they will invest in digital solutions, but only 32% claimed digital channels are effective in securing sales because they lack personalized advice capabilities.
The report highlighted the significance of improving insurers’ distribution networks with emerging technologies – including augmented and virtual reality and artificial intelligence (AI) – and embedding insurance in customers’ daily lives by embracing open insurance.
According to the report, digital channels earned high marks for 24/7 availability, ease of updating information for insurers, and search capabilities. However, their inability to provide in-depth, personalized advice to customers seeking complex products such as retirement plans and annuities emphasized the significance of agents and brokers when purchasing these types of insurance.
Finding highly affordable leads to keep sales coming in
At iLeads, we have many great solutions for insurance agents at a low cost. If you’d like to see how we can help you bring in consistent sales for a great price, give us a call at (877) 245-3237!
We’re free and are taking phone-calls from 7AM to 5PM PST, Monday through Friday.
You can also schedule a call here.