The insurance industry is currently dealing with digital disruption, and by disruption I’m talking about the change in the consumer and the consumer habits, what I call The New Face of Insurance.
The myth that the insurance consumer is not ready for the digital world must be dispelled. According to The surprising facts about who shops online and on mobile (Business Insider 2015):
- One in four shoppers is actually over the age of 55
- Millennials make up the largest portion of online shoppers in terms of dollars spent and yet they earn the least
According to Gartner, 43% of our industry revenue will come directly from digital markets by 2020. Now think about that in our current captive and broker world.
LIMRA says that:
- 74% of insurance customers want to do research online, educate themselves before they even think about talking to an agent
- 25% of those people will even buy online, right there and then
- Sadly, that’s really not available in our industry
We went from captive agents to independent agents and now we’re moving to more of a I-want-to-be-my-own-agent.
An example of this would be a UK company by the name of Beagle Street. They’re attacking the old ways that we do things, attacking the old financial advisers. And what they’re saying is “come and buy online.” So how do we go with this?
Digital Strategy and Digital Footprint ≠ website redesign. It’s way more than that. It’s about continually evolving to make it easier for consumers to do business with you. You need to go where your consumers are – you can no longer expect your consumers to come to you.
It’s looking at multi-channel distribution; embracing your agents, embracing online, and embracing the education that people are looking for. Just think about the customer service improvements t by being able to reach out to them through social media when there is a catastrophe.