E-commerce has never been so popular. In 2021, global online shopping will reach $4.5 trillion USD. And the insurance industry is no exception to this craze, especially since Bill 141 started allowing insurers to sell their products online.
For group insurance brokers, this change could jeopardize the future of their industry. Indeed, customers can now more easily shop for their insurance without going through an intermediary. As such, we can expect a significant increase in online sales for group insurance in 2020.
So what does the future look like for group insurance brokers over the next decade?
Here are some tips and predictions for this endangered profession:
Keep it simple
47% of prospects looking for life insurance are looking for comfort and simplicity in the purchasing process before any other criteria (Best Life Rates). Are group insurance brokers aware of this preference? Their survival could depend on their ability to modernize their customer experience.
TIP #1 ➤ Almost half of life insurance prospects are looking for simplicity in the purchasing process over any other advantage.
Matching is not enough
In any field, an intermediary who doesn’t add value is sooner or later removed from the purchasing process. To survive, the group insurance broker must offer more to the customer than the simplicity of the purchasing process. But what more could they offer?
TIP #2 ➤ To set themselves apart, brokers must offer more than their competitors.
The advantage of human relationships
So what should brokers look to leverage? Brokers benefit from an undeniable advantage: their relationship of trust with their clients. According to a 2018 study, the more brokers value their relationships, the higher their loyalty scores. They can therefore gain a lot from focusing on customer relationships.
TIP #3 ➤ By focusing on customer relationships, brokers offer an element of value that increases customer loyalty.
The emotional + functional combo
We mustn’t forget the simplicity that is highly valued by customers. It’s therefore through the combination of emotional and functional advantages that brokers will be able to stand out. As such, brokers need to bring emotional well-being and a positive impact to the client’s life (reduction of anxiety, motivation). But also, brokers need to improve the functional aspects offered (simplification of the processes, user-friendliness).
TIP #4 ➤ While always targeting emotional needs, brokers mustn’t neglect functional needs as well.
Get the right tools to improve customer relationships
Brokers are increasingly relying on task automation. By freeing yourself of administrative tasks, you can invest more time in the advisory service offered to your clients. This allows you to solidify your brand image as a proactive and attentive advisor. What’s more, you’ll be able to identify more business opportunities within your client portfolio.
TIP #5 ➤ An advanced BMS (Broker Management System) allows you to spend more time with your customers while providing a quick and simple customer experience.
By modernizing their purchasing processes and improving their relationships with the client, group insurance brokers will find ways to stand out and survive in their evolving industry. Currently, there are high–performance platforms specially designed for the reality of brokers.
These allow them to devote more time to their customers. But what are the tips for improving these relationships? This is what you will discover in our next article, The 4 Best Broker Practices in the Era of Online Shopping.
Do you have questions about the best approaches to modernize your offer? Contact our experts for personalized advice.