Investing in IT: Why It Matters and What to Remember

From meetings with clients to researching claims to managing their businesses, insurance agents are pulled in multiple directions all day long. But new technologies, in combination with cloud-based management software, are giving many agents a leg up on the competition.

In an industry sometimes known as a late adapter when it comes to modern tech, agents who take advantage of sophisticated management systems can work from any location in the world, tapping into platforms that help manage client information and support informed policy offerings.

According to Celent, the total insurance IT spend across North America, Europe, Latin America and Asia-Pacific is anticipated to reach $189.2 billion by the end of 2017. That total not only represents the insurance sector’s dedication to IT spending, but also shatters the myth that the industry is averse to technological innovation. Increasingly, the insurance sector values technologies that improve its ability to drive business results.

But as with any industry, insurance professionals should take certain considerations into account before investing in the latest IT. How will you measure the return on investment? What factors and criteria should you consider when selecting software? And what internal processes do you need to ensure a seamless rollout of the technology to maximize its usefulness?

The “Holy Grail” for insurance agencies looking to implement the latest IT is its ability to enable a “smooth transition from data gathering to policy maintenance,” according to David Macknin, president & CEO of Chicago-based Alper Services.

For example, decision makers who are responsible for choosing a particular technology must consider how efficiently the software captures information to ensure policies are up to date and that information is in line with consumers’ ever-evolving needs. In a perfect scenario, decision makers should look at IT to determine “how close to single data entry you can you get” to ensure optimal efficiency, Macknin says.

Agents must also consider the ability of modern insurance platforms to level the playing field between independent agents and national or global firms. Before the advent of these management systems, larger companies had a distinct advantage in the industry because they could gather more consumer data. But in today’s connected world, an independent agent can purchase software that provides them with the same breadth of data the biggest agencies are able to access. This increased access to data translates into a huge return on investment if agents can use the data in the right way.

Understanding what to do with the data is important as well. Macknin says a core growth factor for his company is retaining customers and leveraging their network of colleagues, friends and family to secure new clients.

For example, if data shows that a group of customers in an area enjoys fine wine, Macknin suggests holding an invite-only wine tasting event where clients can bring a guest. This event provides the insurance business another touchpoint to deepen client relationships and make new connections with whomever their customers invited to join them at the event. But best of all, the customer invited to the event will likely refer their guest to your agency, ultimately helping grow your business.

Based on the capabilities of modern insurance software and its popularity among the most successful agencies and agents, modern technology appears vital to anyone looking to succeed in the industry.

Jennifer Gehrt is author and partner at Communiqué Public Relations.