Blog

The Changing Landscape for Insurance & Financial Services

 

As a former insurance and financial adviser, I know much has changed in the past few years in the insurance and financial industry. Customers are more sophisticated and they want to be seen as people, not numbers.

Roi Agababa, the CEO of Novidea, a major brokerage software provider for all lines of insurance, recently wrote an article entitled “5 Key Challenges Facing the Insurance Industry.” One of the challenges he notes is that customer expectations have changed.

He points to the fact that “70 percent of customers expect [their insurance] business to tailor communications and services” based on transactions in the past. When they renew, they assume their experience will be “a frictionless experience – hassle-free, no waiting, and self-service where possible.”

This experience may sound less personalized, but it’s not. The new insurance buyers still want personal attention but on their own terms.

“Digital-savvy millennials are gradually replacing baby boomers as the main buyers of personal insurance and, with a phone always in hand, expect to transact anytime from anywhere.”

Business as Usual is Changing

Salesforce Research organization recently surveyed more than 6,700 consumers and business buyers of goods and services around the world. The results were far different than we might have imagined. Some of the highlights of what they found include:

  • When they call your office, more than 75 percent expect the insurance companies to understand their needs and expectations. This obviously requires a thorough knowledge of your products.
  • Millennials do their research. They have undoubtedly studied many aspects of your products before they call. Getting the sale means doing more, knowing more and approaching their needs without condescension.
  • Along with the point above, “59 percent of customers say tailored engagement based on past interactions is very important to winning their business.” When they ask for options or a presentation, they want it tailor-made not boiler-plate.
  • 84 percent of customers say being treated like a person, not a number, is very important to winning their business. Just because they may find you online or even prefer to correspond with you through texts and emails does not mean they want an impersonal interaction.
  • 63 percent of your insurance or financial services customers want new and innovative products; at the same time, nearly 70 percent are not impressed with ho-hum products that every other representative is offering.
  • Finally, there has been an increase of about 62 percent of concerns about cybersecurity than only two years ago. Expect your current and future clients to ask about cybersecurity within in your firm. How will you answer?

“Business as usual” will never be quite the same. The new generation of insurance and financial services buyers want seamlessness of transactions, expertise, and personalization.

In 2020, you must have the vision to meet your clients’ demands where they are, the determination and daily grit to rise above your competitors, and the dedication to being the best agent you can be.

 

To contact Scott Burrows, Inspirational Insurance and Financial Services Speaker, contact his office today through this website or by calling: (520) 548-1169