The traditional business model in the insurance space was long overdue for a makeover. Antiquated sales and marketing approaches, manual data collection and processing, laborious underwriting, and sluggish timelines had been par for the course in the industry – until the arrival of a series of new technology tools. For those producers operating within this tech-augmented business model, the underwriting process has become easier, more accurate and, perhaps most importantly, far faster.
The value of that speed may seem self-explanatory to insurers, but it’s worth diving into all the ways technology can bolster a producer’s business, improve client retention and conversion, and lead to new sales growth.
Enhancements Based on Faster Insurance Underwriting
A speedy insurance underwriting process can have a number of positive effects on the producer business model. Here are a few of the most impactful ones:
Improved customer experience. Customers appreciate (and often expect) efficient services, and are more likely to return to a producer who can provide timely solutions as opposed to a multiple-day waiting period. With tech-driven solutions such as automation, data analytics and telematics, the underwriting process reduces the waiting time for customers that once lasted days, to just minutes. This can translate to a reputation that promotes repeat business and word-of-mouth referrals.
Higher conversion rates. Fast underwriting reduces the chances of customers abandoning the insurance application process due to lengthy delays. More prospects who begin the application process are likely to see it through if it can be completed quickly – especially if they’re shopping for another producer’s business.
Reduced operational costs. Streamlining the underwriting process can lead to cost savings by minimizing the resources and time required to process each application. Brokers can allocate these savings to other aspects of their business.
Better risk management. Speedy underwriting doesn’t necessarily mean sacrificing accuracy. Advanced underwriting technologies can still assess risks effectively while expediting the process. This results in a win-win situation for both brokers and clients.
Tech-enhanced insurance underwriting: the results
The advantages of faster insurance underwriting may be too complicated to quantify, but producers who have lost business to delays know all too well how slow processes can cost them in the short and long term. In fact, the value of speed in the insurance space likely runs even deeper than that.
In a market where customers have seemingly endless options for insurance providers, insurers with a fast underwriting process gain a competitive edge. A producer can market their quick turnaround times as a valuable selling point, attracting more clients. Improved efficiencies unlocked by a tech-augmented business model are scalable, allowing for a larger volume of clients and applications, and leading to increased revenue without necessarily requiring a proportional increase in resources.
Above all, insurance customers are more likely to be swayed to work with a producer with more time to provide hands-on service and the reputation that comes with a tech-savvy firm. Quick underwriting demonstrates an insurer’s commitment to serving customers’ needs promptly, while also giving time back to a producer, which can be spent selling more, broadening their client base and building strong relationships with those people.
An invaluable tool available to all producers is SynchronoSure’s GigBOP® – customizable, tech-driven package business insurance for small businesses and independent contractors. To become an appointed producer and start providing accurate, near-instant quotes to your clients, register here to become a producer and begin connecting your clients to GigBOP®.