With the vaccination drives around across the globe, the world is nearly at the end of the pandemic. During the pandemic, however, it seemed very difficult for all industries to cope. The insurance brokers industry was also in an unpredictable landscape.
However, with recent developments, the insurance industry is expected to recover faster than most other industries as well as the larger economy after the pandemic. Although insurance brokers have been able to thrive, there are a set of things insurance brokers need to adapt to post-pandemic changes.
This blog post will elaborate on the adaptations to the changes made by the pandemic.
Insurance Industry: Current Market Scenario
Firstly, what does the current market scenario looks like?
The Covid-19 pandemic seems to have far-reaching effects on nearly all businesses across regions. However, the insurance industry is holding up quite well. According to Research Dive, the global insurance brokerage market is expected to garner a revenue of $515.3 billion by 2028, increasing from $317.9 billion in 2020.
Globally, pandemic anxieties have also sparked a nearly 7% increase in consumer’s intention to buy insurance. The increase in demand for insurance policies has fueled this growth. Additionally, various initiatives undertaken by the government of many countries across the globe around making insurance policies more accessible to the people are driving the insurance brokerage market growth.
Now, who is thriving through this season of challenges and why are they thriving over others?
The answer is obvious – insurance brokers and all other insurance entities who are catching up with technology are thriving.
The pandemic has pushed the world to become more and more digital. So, customers are expecting digital journeys and switching to providers who offer digital services over those who do not. Therefore, insurance brokers who are adapting technology gain an edge over brokers who are using outdated technology or still working on manual modes.
Adapting to the New Normal – What’s the Way for Insurance Brokers?
Expand the Offerings
Instead of focusing on a few sections, it is time to focus on branching out into others. For instance, if brokers are selling only retail life insurance, now is the right time to add health and other insurance offerings to the catalogue.
For insurance brokers, it is vital to expand their sales verticals to generate more revenue and expand their business. While doing so, it is crucial to keep track of each segment and understand its nuances.
Sharpening Focus on the Segments
As mentioned earlier, keeping track of the customer segments and its nuances is extremely important. This will allow insurance brokers to reach out with the right products to the set of customers thereby, increasing the chances of improved insurance distribution.
For example, when selling millennials and gen-z customers insurance policies, insurance brokers should take products that appeal to them. Even if they want to provide traditional insurance products, the focus should be on educating them about the importance of products before starting to sell. There should be a significant amount of focus on educating and advising.
Another area of focus is making a service that emphasizes on digital service. Youngsters today are tech savvy, and they expect the same from their insurance brokers. So, insurance brokers need to focus on not only the product but also a service that would interest them.
Insurance brokers who offer advice and a friendly digital service will stand out from the rest. This will not only help them form long-lasting bonds with existing customers, but it will also attract new customers.
Collaborate with Digital Marketers
Collaborating with digital marketers is vital since having a digital marketing strategy will reap a lot of benefits in the post-pandemic world. In fact, it is critical to have an online presence that seems legitimate and up-to-the-minute to earn customer’s trust. This is one of the basic requirements for potential customers in younger demographics.
Furthermore, collaborating with digital marketers creates a major difference in the brand journey. Digital marketing creates brand awareness and brand recall, this will intrigue the customer to engage more with the insurance broker.
Final Words
The pandemic has changed the way of the world immensely for end customers as well as insurance brokers the ways in which things work will never be the same. However, changes open doors to opportunities and improvements.
As a result of the pandemic, customers and businesses are interacting more via digital platforms. So, insurance brokers are also focusing on connectivity and distribution. Those who do so, are moving forward and moving faster.
With technology by its side, the future of insurance brokers looks brighter. Want to partner with an InsurTech company that helps you achieve this digital transformation? Contact Us Today.
