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The Digital Transformation of Insurance

IVANS Index: Third Quarter Results Remain Consistent

October 05, 2017

by Matt Foran
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IVANS Index is a data-driven report of current conditions and trends for premium renewal rate change of the most placed commercial lines of business in the insurance industry. Data collected in the IVANS Index enables insurers to determine competitive rates and the most profitable lines of business for investment. To learn more about IVANS Index, read IVANS Index: Industry Insights to Help You Run Your Business Better.

Q3 Results Show Variable Premium Renewal Rate Change Average
Premium renewal rate change across the industry remained consistent for the quarter, with greater variability experienced by Commercial Property and Workers’ Compensation insurance quarter-over-quarter. Workers’ Compensation remains the only line of business experiencing negative premium renewal rate change.

This quarter’s key findings include:

  • Commercial Auto: Premium renewal rate change averaged 3.00% for the quarter (up from Q2), ending at 2.55% for September.
  • Business Owner’s Policy (BOP): Quarter premium renewal rate change averaged 3.79%, representing a decrease over last quarter’s average of 4.21%. BOP premium renewal rate change finished the quarter at 3.87% in September. 
  • General Liability: Q3 premium renewal rate change experienced limited variability relative to Q2. The quarter premium renewal rate change low reached 1.68% in August and ended the quarter in September at 1.70%.
  • Commercial Property: Q3 premium renewal rate change decreased quarter-over-quarter, with an average rate change of 2.48% as compared to 3.08% in Q2.
  • Umbrella:Quarter premium renewal rate change averaged 1.47% vs. 0.94% in Q2. 
  • Workers’ Compensation: Premium renewal rate change dipped again in Q3, averaging at -1.18% as compared to -0.16% in Q2.

In Q3, Commercial Property insurance premium renewal rate change averaged 2.48% vs. 3.08% in Q2, with a six month average of 2.78%. The third quarter’s premium renewal rate change for Commercial Property remained lower than any rate change experienced in Q2, with the highest change experienced in August (2.59%) and the lowest in September at 2.41%.

Workers’ Compensation premium renewal rate change averaged -1.18% in Q3 vs. -0.16% in Q2, with a six month average of -0.67%. July marks the lowest premium renewal rate change of the year at -1.41%, with September being the second lowest at -1.31%.

IVANS Index continues to demonstrate positive momentum for the market and highlight the most profitable opportunities for the industry. IVANS Index is available to agencies and insurers as part of Market Insights at markets.ivansinsurance.com.

Download the full IVANS Index Q3 Report >

Matt Foran, VP and general manager of IVANS Market Appetite, a division of Applied Systems, is responsible for the creation and strategic execution of the cutting edge distribution platform built for the commercial insurance industry. Prior to his current role, Matt was the CEO of EvoSure, which was acquired by Applied Systems in September 2015. Before co-founding EvoSure, Matt was the director of strategy for Zurich Specialty Products, a $2.5 billion business unit of Zurich Insurance Group, where he worked closely with the CEO and Senior Management to set overall strategic direction, develop and execute financial and operational plans, and lead execution of strategic initiatives. Previously, Matt served as assistant vice president of Marsh USA, with responsibilities including the initial formation of the Marsh & McLennan Agency, the Marsh Select Model, the restructuring of Marsh USA, and was a broker for healthcare and Fortune 500 firms. Matt was selected as a Global Rising Star by Reactions Magazine in 2011 and named in Insurance Business America magazine’s Hot 100 list for 2015.

Finding Markets: Turn Wasting Time into Saving Time

September 21, 2017

by Lori Heemstra
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Agencies strive to provide the best products at the right price for customers and prospects. But as an independent agent working with numerous insurer partners, I know first-hand how difficult it can be to find the right insurer for each risk. Manually searching for appetite has traditionally been an inefficient and time-consuming process. In fact, when reviewing a recent IVANS survey, I was not surprised to find that 71% of agents surveyed admitted that they have missed opportunities to place business due to lack of market access.

Agencies need digital tools to improve the process of finding the right insurer appetite at the right time. Enter IVANS Markets, a free online search tool that immediately presents agents with a list of insurers, MGAs and wholesalers with an appetite for the specific risk they are searching for. This simple, automated solution provides agents with greater access to markets, making it extraordinarily easy and much quicker to find the best markets for clients to drive more new and renewal business.

Stay within your daily workflows to get the answers you need
At Berends Hendricks Stuit Insurance, we were hampered by outdated, manual processes and inaccurate appetite information. To access markets more quickly, our agency implemented IVANS Markets and started to experience exponential time savings and growth opportunities. IVANS Markets instantly provides me with a list of insurers who have an appetite for my risk and more specifically, information on who I can contact. Streamlining the submission process saves me hours of work every day. I no longer have to wait days for insurers to respond to submissions. I can get the results I need, when I need them. Through increased market access and insight, we have won new business that we have historically not written.

Continued success in the future
Ultimately, automated search technology like IVANS Markets has completely changed the way I search for insurer commercial appetite. Now we go to insurers we know want the risk, which results in time saved around submission and quoting. I encourage any independent agent looking to grow their business to try IVANS Markets. This free tool provides more access to new markets in less time, which is one of the keys to continued success in the digital marketplace.

Agents looking to leverage this complimentary search tool from IVANS can access it via their agency management system, or by visiting markets.ivansinsurance.com.

Image of woman smilingLori Heemstra joined Berends Hendricks Stuit in 2005 as the Commercial Lines Division Manager. Her duties include overseeing the customer service agents and support staff, training new and existing staff, coordinating technology and developing consistent professional standards. She has over 25 years of insurance experience and is a Certified Insurance Counselor (CIC). Lori is a member of the Ivans Agent’s Council, Applied Client Network Large Agent Alliance, the Vice Chairman of the ACN Member Relations Committee and serves on various insurance company councils.

IVANS Index: Premium Renewal Rate Change for August

September 14, 2017

by Matt Foran
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IVANS Index is a data-driven report of current conditions and trends for premium renewal rate change of the most placed commercial lines of business in the insurance industry. Data collected in the IVANS Index enables insurers to determine competitive rates and the most profitable lines of business for investment. To learn more about IVANS Index, read IVANS Index: Industry Insights to Help You Run Your Business Better.

Auto insurance losses a cause of pain for most insurers over the past 18 months
Fitch ratings has stated that “U.S. commercial auto insurance has evolved into a chronically underperforming product segment.” Increased losses have been attributed to more miles driven as the economy recovers and gas prices remain low, distracted driving caused by cell phones, higher repair costs, and higher bodily injury severity.

Despite consistent and worsening product performance results, commercial auto premium renewal rates have remained steady since the beginning of the year. In July, rates moved above 3% and remained above 3% in August. One of the largest drivers of the increase has been California. As noted in the graph above, California commercial auto is on the move upwards. Many other large states have remained steady.

Will California be an early leader that other states follow? With Harvey impacting Texas and Irma likely causing substantial losses in Florida, it is likely that other states may be following soon.

Download the full IVANS Index Q2 Report >

Matt Foran, VP and general manager of IVANS Market Appetite, a division of Applied Systems, is responsible for the creation and strategic execution of the cutting edge distribution platform built for the commercial insurance industry. Prior to his current role, Matt was the CEO of EvoSure, which was acquired by Applied Systems in September 2015. Before co-founding EvoSure, Matt was the director of strategy for Zurich Specialty Products, a $2.5 billion business unit of Zurich Insurance Group, where he worked closely with the CEO and Senior Management to set overall strategic direction, develop and execute financial and operational plans, and lead execution of strategic initiatives. Previously, Matt served as assistant vice president of Marsh USA, with responsibilities including the initial formation of the Marsh & McLennan Agency, the Marsh Select Model, the restructuring of Marsh USA, and was a broker for healthcare and Fortune 500 firms. Matt was selected as a Global Rising Star by Reactions Magazine in 2011 and named in Insurance Business America magazine’s Hot 100 list for 2015.

Goodbye Paper, Hello Productivity

September 07, 2017

by Kristy Wilson
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Woman in business attire smiling while talking on a mobile phone, sitting at a desk in front of a computerDo you find yourself spending countless hours every day re-keying data and processing requests? Are you searching for a better way to access policy documents on demand? If the answer is yes to either of these questions, then maybe it’s time your agency makes a change in the way you connect with your insurers.

In my role at Kellerman Insurance, I require a secure and efficient way to manage policy updates and files directly in our management system. By connecting us directly to our insurer and MGA partners, IVANS enables our agency to automate the exchange of information directly from their system into our own via download. The ability to work in one management system versus referencing individual insurer portals for customer information allows our agency to operate more efficiently, provide better customer service and increase business growth.

The up-and-comer in download
A key download service IVANS offers is eDocs and Messages, which are a form of download that push a PDF or a message from the insurer’s policy admin system directly to the agency management system. This download offers a secure and managed alternative to email, mail and faxes.

In your agency management system, you can attach eDocs and Messages downloads directly to a client and/or policy, eliminating time previously spent searching and pulling client information from each insurance company’s site.

The value of eDocs and Messages to your agency
Implementation of eDocs and Messages download has enabled our agency to increase overall operational efficiency: with immense time savings, reduction of production cost, enhanced customer service and improved ease of doing business. In fact, according to a recent IVANS study, 79% of agencies saved at least one hour per day per employee when using eDocs and Messages. 

When evaluating if your agency should leverage eDocs and Messages download, consider these three benefits:

  1. Connect directly to insurers from your agency management system
    Enables insurers to easily begin servicing and marketing new products and enables agents to have better access to products that better serve their clients. Having the latest information delivered via download also ensures accurate underwriting and servicing for both agents and insurers.
  1. Build stronger customer and insurer relationships
    Focus more time on servicing customers and selling insurance by eliminating time spent manually managing administrative tasks.
  1. Automate operations via a single exchange
    Working within a single data exchange system improves overall staff productivity by eliminating time spent visiting multiple portals searching for information.

Getting started with eDocs and Messages
IVANS offers a free online tool, IVANS Exchange, which allows you to review insurer download connections, like eDocs and Messages, available to your agency and communicate interest in receiving download by line of business from insurers. The benefit of IVANS Exchange is that as your business needs change, you can expand and customize your insurer download connections to match your operational needs.

To get started with IVANS Exchange, follow these easy steps:

  1. Register your agency or log in
    You must first log into your IVANS account before you can access any reports or dashboards in IVANS Exchange. To log in or register for a new account, visit exchange.ivansinsurance.com.
  1. Access your Connections Report
    Once you have logged in or created an account, you can view your IVANS Connections Report. This shows all lines of business your agency is currently downloading. It will also show inactive download connections that are available to your agency.
  1. Customize your Connections Report
    You can request new downloads from your insurers or indicate if you are having download quality issues. When an insurer makes a line of business available to agencies, it is marked as an “A” for “available” on an agency’s Connections Report. Similarly, insurers have an agency report that shows where agents have expressed interest (marked by “W”) in specific download services, like eDocs and Messages.

The Connections Report has been a great tool for my agency. Interacting with multiple insurers can make it hard to keep track of what lines of business your agency is downloading, who you’re downloading with and who to contact if you want to download. The Connections Report brings it all together in one tool, enabling you to be more organized and efficient.

At our agency, there is a big difference in our production and it’s easier to do business with insurers who use IVANS. Interacting with insurers that don’t offer eDocs and Messages download services really throws us off track. The more we can stay in our system and keep a continuous workflow, the more productive we are.

In a world that is all about connectivity and instant access to information, it’s crucial for agencies and insurers to revolutionize the way they do business by offering services that allow you to better connect with and serve your customers. Leveraging connectivity and automated information exchange services, like eDocs and Messages download, is critical to evaluate your competitive advantage in today’s digital market.

For more information on eDocs and Messages and the advantages they offer, watch this complimentary webinar.

Kristy Wilson joined Kellerman Insurance in 1992. Her main focus for the last several years has been in commercial lines and life insurance. She also handles downloads and maintaining efficient processes in their management system. Kristy is currently serving on the Executive Committee of the Kansas Association of Insurance Agents. She is also a member of the IVANS Agent’s Council.

IVANS Index: Premium Renewal Rate Change for July

August 24, 2017

by Matt Foran
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IVANS Index is a data-driven report of current conditions and trends for premium renewal rate change of the most placed commercial lines of business in the insurance industry. Data collected in the IVANS Index enables insurers to determine competitive rates and the most profitable lines of business for investment. To learn more about IVANS Index, read IVANS Index: Industry Insights to Help You Run Your Business Better.

Workers’ Compensation reaches lowest point yet in 2017
In July 2017, premium renewal rate change for the majority of standard commercial lines products remained in positive territory, including Auto, Business Owner’s Policy (BOP), General Liability, Property and Umbrella. Workers’ Compensation is the one product that remained negative, dipping below -1.00% for the first time this year.

Workers’ Comp averaged -0.16% rate change in Q2 vs. -0.48% in Q1, with a six month average of -0.32%. In May, renewals experienced a temporary spike above zero to 0.58%; however, it dipped to -1.41% in July, down from -0.86% the month prior.

The latest IVANS Index figures show that premium renewal rate change across the industry has remained consistent, with Commercial Auto and Umbrella premium renewal rate change experiencing the greatest positive increase while Workers’ Compensation continues to trend more negatively.

IVANS Index continues to lead the industry in providing unique data insights on premium renewal trends that are influencing renewal and pricing strategies. IVANS Index is available to agencies and insurers as part of Market Insights at markets.ivansinsurance.com.

Download the full IVANS Index Q2 Report >

Matt Foran, VP and general manager of IVANS Market Appetite, a division of Applied Systems, is responsible for the creation and strategic execution of the cutting edge distribution platform built for the commercial insurance industry. Prior to his current role, Matt was the CEO of EvoSure, which was acquired by Applied Systems in September 2015. Before co-founding EvoSure, Matt was the director of strategy for Zurich Specialty Products, a $2.5 billion business unit of Zurich Insurance Group, where he worked closely with the CEO and Senior Management to set overall strategic direction, develop and execute financial and operational plans, and lead execution of strategic initiatives. Previously, Matt served as assistant vice president of Marsh USA, with responsibilities including the initial formation of the Marsh & McLennan Agency, the Marsh Select Model, the restructuring of Marsh USA, and was a broker for healthcare and Fortune 500 firms. Matt was selected as a Global Rising Star by Reactions Magazine in 2011 and named in Insurance Business America magazine’s Hot 100 list for 2015.

Tools for Growth: How Our Agency Finds More Markets in Less Time

August 10, 2017

by Ryan Aulabaugh
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At 618 Insurance Agency, providing superior customer service and low rates for our clients drives the success of the agency. But as an independent agent working with numerous insurer partners, I know first-hand how difficult it can be to find the right insurer for each risk. Manually searching for appetite takes a lot of time, it’s what I call the “hurry up and wait” process: having to write numerous emails to underwriters and just hope that they get back to us on time.

This process can take hours out of the day, wasting time that could be spent servicing clients, and doesn’t always produce the results you need. To build new and more successful business opportunities, our agency uses technology that increases our access to more insurers and streamlines the appetite search process.

Saving time with instant access to the right markets
At 618 Insurance Agency, we found a simple way to improve the process of finding the right insurer appetite at the right time. We use IVANS Market Appetite — a free online search tool that enables us to quickly identify markets for commercial lines risks to submit our new and renewal business. We simply type in the industry and check all the lines of business we’re looking for, and the search tool instantly presents a list of insurers ready to do business with us.

“We have been able to save about four to five hours daily. The time savings from IVANS Market Appetite is invaluable to me.”

As soon as we implemented IVANS, we experienced exponential time savings and growth opportunities with access to more markets for our clients. I can easily save hours upon hours of work, as I already know who I need to contact to streamline the quoting process and make sure I get the results I need, when I need them. The tool reduces time-consuming, manual processes that can be hampered by outdated, inaccurate information to make sure we have the most up-to-date insurer appetite.

Increasing connectivity with insurers for greater success
Placing more business with appointed insurers is also crucial to growing our business. A quick search in IVANS Market Appetite not only presents the appetite information we are looking for, but shows our appointed insurers first, so we can easily expand the insurer relationships we already have and place more business with appointed insurers that we didn’t know we could place business with. Through IVANS, we are submitting the business that our insurers are looking for to help improve connectivity, and we have won new business that we would have historically not written because of this increased access and insight.

Ultimately, automated search technology like IVANS Market Appetite has completely changed the way I go about the quoting process, and I’m able to easily locate and bind new business in a lot less time. If you’re an independent agent looking to grow your business, I encourage you to try IVANS Market Appetite. This free tool for agents provides more access to new markets in less time, which is one of the keys to continued success in the digital marketplace.

You can learn more about how our agency uses IVANS to increase efficiency and profitability by watching the Build New Business Opportunities Through More Access to Insurers on-demand webinar I recently participated in.

Ryan Aulabaugh HeadshotRyan Aulabaugh is a Risk Advisor at 618 Insurance Agency, a leading agency that provides quality protection for hundreds of individuals, families and businesses throughout Illinois.

Top 5 Reasons to Attend IVANS Connect 2017

July 13, 2017

by IVANS Communications
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Every year, insurance professionals from across the industry gather at IVANS Connect to learn about the latest innovation and opportunities in digital distribution and servicing. As one of the can’t-miss industry events of the year, IVANS Connect provides insightful keynotes and valuable education sessions specifically designed to help your business embrace digital transformation. Attend the industry’s only conference dedicated to advancing information exchange — connecting insurers, agencies, MGAs and their insureds through digital technology.

Take advantage of the opportunities created by the Digital Transformation of Insurance at IVANS Connect 2017 and prepare your business for success in our digital world.

Register Now for IVANS Connect 2017 >

IVANS Index: Second Quarter Continues to Show Positive Results

July 06, 2017

by Matt Foran
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IVANS Index is a data-driven report of current conditions and trends for premium renewal rate change of the most placed commercial lines of business in the insurance industry. Data collected in the IVANS Index enables insurers to determine competitive rates and the most profitable lines of business for investment. To learn more about IVANS Index, read IVANS Index: Industry Insights to Help You Run Your Business Better.

Q2 Premium Renewal Rate Change Remains Consistent
Premium renewal rate change across the industry remained consistent for the quarter, with greater variability experienced by General Liability and Workers’ Compensation insurance. The IVANS Index Q2 results show a slight uptick across Business Owner’s Policy, Commercial Property, and Workers’ Compensation compared to Q1. However, Workers’ Compensation moved back into negative territory at the end of Q2 following positive territory in May.

This quarter’s key findings include:

  • Business Owner’s Policy (BOP): Quarter premium renewal rate change averaged 4.21%, representing an increase over last quarter’s average of 3.89%. BOP premium renewal rate change finished the quarter at 4.11% in June
  • Commercial Property: Q2 reversed the downward premium renewal rate change trend of Q1, with rates moving to 3.52% in June from an average of 2.66% in Q1. 
  • Workers’ Compensation: Q2 experienced the first positive premium renewal rate change of 2017 in May at 0.58%, but quarterly average remained in negative territory at -0.16%.

Premium renewal rate change for Business Owner’s Policy (BOP) averaged 4.21% in Q2, with May marking the quarter high at 4.49% and April marking the quarter low at 4.02%. California BOP buyers have moved upwards to 6.47% premium renewal rate change in June vs. the average of 4.11% across all states. In the past quarter, California buyers have averaged 5.50% premium renewal rate change vs. the average of 4.21% across all states.

Workers’ Compensation premium renewal rate change averaged -0.16% in Q2 vs. -0.48% in Q1, with a six month average of -0.32%. In May, renewals experienced a temporary spike above zero, but quickly returned to negative territory at -0.86% in June.

IVANS Index continues to provide unique data insights on premium renewal trends that are influencing renewal and pricing strategies. IVANS Index is available to agencies and insurers as part of Market Insights at markets.ivansinsurance.com.

Download the full IVANS Index Q2 Report >

Matt Foran, VP and general manager of IVANS Market Appetite, a division of Applied Systems, is responsible for the creation and strategic execution of the cutting edge distribution platform built for the commercial insurance industry. Prior to his current role, Matt was the CEO of EvoSure, which was acquired by Applied Systems in September 2015. Before co-founding EvoSure, Matt was the director of strategy for Zurich Specialty Products, a $2.5 billion business unit of Zurich Insurance Group, where he worked closely with the CEO and Senior Management to set overall strategic direction, develop and execute financial and operational plans, and lead execution of strategic initiatives. Previously, Matt served as assistant vice president of Marsh USA, with responsibilities including the initial formation of the Marsh & McLennan Agency, the Marsh Select Model, the restructuring of Marsh USA, and was a broker for healthcare and Fortune 500 firms. Matt was selected as a Global Rising Star by Reactions Magazine in 2011 and named in Insurance Business America magazine’s Hot 100 list for 2015.

CAB/AAB Insider: Agents Reveal What They Really Want from Insurers

June 29, 2017

by Thad Bauer
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Our annual Carrier & Agency Advisory Board (CAB/AAB) meeting brings together insurers and agents for an open dialogue on the group’s collective experiences, challenges and opportunities in the insurance industry. Without fail, year after year, we glean important insights that validate the direction the industry is heading relative to insurer-MGA-agency connectivity.

And this year was no different. A key topic of engagement was how insurers can better support digital agencies. While this may sound one-sided, it’s not. When independent agencies have what they need to compete in the age of digital transformation, everyone wins – agencies, MGAs, insureds and insurers.

Agents identified 3 distinct areas of support they seek from insurers:

  • Operations
  • Servicing
  • Competitiveness

Operations
At the heart of a digital agency is a centralized management system that all other digital agency capabilities rely on. It’s the hub for all prospect, customer policy and financial data across the business. From an operational standpoint, the efficient exchange of data and information from insurer/MGA policy systems directly into the agency management system is critical for agency success. Agents conduct business with countless insurer and MGA partners. To have data and information delivered directly to the management system results in significant time savings versus having to visit countless different insurer portals. Automated workflows and faster insurer communication enable agencies to deliver better service throughout the insurance lifecycle.  

Servicing
Today, consumers expect instant access to information and immediate service. To effectively meet these expectations, digital agencies need the most current policy information as well as account status details on billing, claims, policy and loss run. Automating the exchange of this information through connectivity technology makes these transactions available more quickly. When agencies have this information at the exact time it’s needed, they’re empowered to not only react to customer inquiries but proactively initiate customer service. In keeping up with client expectations, digital agencies increase renewal retention and grow their book of business.

Competitiveness
A concern weighing heavily on the minds of many agencies is the amount of venture capital investment pouring into the insurance industry. It’s definitely on the uptick, with $1.2 billion invested in 2016, up from $590 million in 2015[1]. With these new startups and business models, independent agencies are experiencing new competition. Forward-looking agencies are embracing digital transformation and seek to increase connectivity with insurers and MGAs. However, frustration sets in for agencies when they can’t get the support they need from partners. By support I mean things as simple as making all lines of business available via download, communicating change and more actively participating in the submission process to accurately express risk appetite. Agencies want all available download connections, particularly eDocs download. eDocs and Messages round out a complete and accurate view of customers, ensuring documents are synced between insurers and agencies. That visibility enables agencies to be more competitive by feeding client needs.

Next, as insurers and MGAs transform into digital businesses by replacing legacy systems, communication throughout the entire process with agencies is crucial. Without change management communication from insurers, the downstream effects on agencies could be detrimental on both ends. If an agency has to process 10,000 policies manually for a month because they were excluded from the change management process, it’s unlikely they’ll continue to do business with that insurer. Agencies are just looking for trust, support and communication – the cornerstones of any great relationship.   

Last but certainly not least, agents want insurers to be more involved in the submission process. The days of identifying appetite via outdated and inaccurate hardcopy guides are over. The way for digital agencies to truly be competitive relies on actionable data informed by machine learning and artificial intelligence. However, we all know that the output is only as good as the input. Therefore, to be most effective, insurers and MGAs need to fully embrace new tools to identify their appetite to agencies.

What things is your insurance business doing to support digital agencies? Let us know in the comments below.

[1] Source: Pulse of Fintech Q4’16, Global Analysis of Investment in Fintech, KPMG International (data provided by PitchBook) February 21, 2017.

Thad Bauer, IVANS InsuranceThad Bauer, vice president and general manager of IVANS Insurance Solutions, has had 25 years of property and casualty experience and has played a key role in furthering the adoption of ACORD standards to exchange data within the industry to improve efficiencies.  He has helped carriers and MGAs realize benefits through innovative technology and workflow implementations of real-time, download, Web service connections to third parties and maximizing data within their enterprise. Prior to IVANS, Thad was president and co-founder of  NxTech, a leading provider of agency-MGA-insurer connectivity and data integration solutions. Prior to NxTech, he spent nine years with BWC Systems and IVANS, Inc. and has worked with more than 350 insurance insurers throughout North America.

How Digital Distribution Will Revolutionize Insurer-Agency Collaboration

June 15, 2017

by Deb Smallwood
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The insurance industry is transforming unlike any time in its history. New startups, new business models, innovative products, and new types of partnerships are surfacing everywhere. Rapid, tech-driven advancements juxtaposed against the stable, deliberate, risk-averse nature of the insurance industry are exposing both challenges and opportunities for insurers.

A very important trend is taking place: convergence. Convergence combines the best of new and innovative ideas, technologies and approaches with the industry’s traditional strengths. Insurers that are able to successfully navigate and capitalize on convergence will emerge as the winners in a stronger digital insurance industry.

But, it would be a mistake to assume that the implications of the digital age are only important for Personal Lines. Transformation is also highly relevant for Commercial Lines insurers. In the case of Commercial Lines, the nature of the transformation is different, with a focus more on enhancing the technology capabilities for agents and improving collaboration between agents and insurers. This era of digital distribution will revolutionize how agents and insurers connect, collaborate, and grow in this new marketplace.

3 Key Digital Distribution Revolution Business Drivers

Three key business drivers have emerged that enable the digital distribution revolution. To create the right strategies and plans to survive and thrive as businesses during the digital transformation of the insurance industry, insurers need to understand these drivers. They will also need to implement core business and technology capabilities. Read our latest Strategy Meets Action (SMA) insurance industry report, Digital Distribution: Revolutionizing Agent/Insurer Collaboration for a detailed outline of the drivers and capabilities. Review SMA’s perspective on the nature of transformation in commercial lines and learn about opportunities to enhance technology capabilities to improve collaboration with independent insurance agents.

Download the full report >

Deb-Smallwood_SMADeb Smallwood, Founder of Strategy Meets Action (SMA) is highly respected throughout the insurance industry for her expertise in helping companies re-think, re-energize, and re-tool their business strategies and  technology investments for profitable growth and differentiation. Focus areas include distribution, portals, agent connectivity, and underwriting automation. Exclusively serving the insurance industry, SMA is an advisory services firm offering retainers, research, consulting, events, and innovation offerings to insurance companies, agencies, MGA’s, and solution providers.

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