It’s no secret that the economic fallout from the coronavirus pandemic has radically changed consumer and employee habits and expectations overnight, and the general insurance industry is no exception. Now, Insurance Brokerages are faced with uncertainty and a number of barriers affecting growth and profitability.
A global survey by Deloitte’s Center for Financial Services further reinforces this, with only 25% of respondents stating they had, “a clear vision and action plan to maintain operational and financial resilience.” In fact, 48% of those surveyed said that the last year, “showed how unprepared [their] business was to weather this economic storm” (Deloitte). This begs the question, what can Insurance Brokerage owners and Managing Directors do to ensure they can grow their business and come out strong this year.
Embrace the digital transformation
Before the pandemic, person-to-person communication played a key role in building client relationships and securing new business. But with a series of lockdowns and the country continuing to work from home, it is vital that Brokerages adopt a ‘digital first’ attitude.
The internet hasn’t only changed the way consumers purchase goods and services, but the way in which we do business. People expect to be able to engage with insurance companies across multiple platforms - from email to social media, chatbots and even client portals, they will make decisions through omni channel applications. If you want to drive client engagement and nurture new business prospects, you need to combine these key platforms to ensure success.
eLearning, training and lifelong learning
The general insurance industry is in the midst of a hard market, which comes with significant challenges. Brokers are faced with a situation where demand for insurance is exceeding the supply, for the first time since the early 2000s. With reduced cover and premium costs rising between 100% to 500%, it’s vital that you offer your employees the training and support they need to navigate this difficult landscape.
Whilst some more seasoned employees have experienced a hard market before, many haven’t, so it’s vital they’re given access to the tools needed to operate effectively. But with workforces spread out across cities, counties or even the country, and traditional training relying on face-to-face sessions, it can be difficult to create a continuous training platform that will help institutions build an agile workforce that can successfully respond to an ever-changing industry.
This is where online training and eLearning comes in, as it’s ideal for mitigating the challenges of a workforce that’s spread out. Online training, mLearning and eLearning enables employees to learn and train on a range of devices wherever they are, whenever. Offering lifelong learning is a great way to attract new talent and keep high-value employees engaged with the resources and tools they need to excel at their job, and in turn, inspire loyalty from them.
Use data-driven decision making
Data-driven decision making plays an essential role in the survival of successful insurance brokerages, no matter how big or small those companies are. Whilst the idea of implementing “big data” and analytics into decision making may seem too complicated, chances are your employees are already using data to make decisions, they just don’t realise it. From benchmarking business performance to improving sales and enhancing customer service, embracing data analytics will help with profitability and business growth.
For example, when you utilise data you can avoid coverage gaps and find opportunities. When you have the right sources in place, you can look at the hard data related to the number and types of claims and the amounts paid across a specific industry, and advise your client on these opportunities, rather than advise on potential risks.
Brokers can also use data to find out which industries are more likely to be underinsured based on their claims insight. From this, they can then target these industries, highlight this pain point and offer solutions.
With over 150 years’ worth of combined experience, our team of expert General Insurance Consultants possess unrivalled knowledge when it comes to helping Insurance Brokerages succeed, whether through tailored recruitment campaigns, specialist Broker Consultancy or advice regarding M&A. If you’re looking to drive the growth of your business, we have an enviable record of matching exceptional candidates with successful companies, with over 97% of placements still in place after 5 years. Get in touch today.