No matter the industry, trends are always evolving. But what happens when businesses refuse to adapt, or wait until it’s too late?

The liquor industry is a prime example. According to the Distilled Spirits Council of the United States, beer now makes up less than half of the U.S. alcohol market—marking a 56% decline over the past 17 years. Liquor sales, on the other hand,  increased from 28% to 35% within the same timeframe. Bourbon in particular has enjoyed a recent surge in popularity.

On the surface, the spike in sales is great news—but because it takes many years to make bourbon, distillers have had a hard time fulfilling orders, which has created a shortage.

The insurance industry is on the verge of a similar shift. Today, most businesses serve clients digitally. But the insurance industry has been slow to adapt.

The State of the Mobile Experience study reveals that 89% of insurance decision makers understand the need for a mobile experience, and 96% of insurance employees are willing to use an app to manage accounts. Insurance leaders are clearly aware of the demand for mobile advancement. But similar to the bourbon industry, they aren’t quick enough on the draw.

Unfortunately, lagging behind is no longer an option. Customer demand for tech-friendlier service indicates a larger trend the industry can’t afford to ignore.

Identifying Roadblocks

Although it’s important for insurance agencies and companies to meet customer demands, implementing an excellent mobile experience is easier said than done. There are three major barriers:

1. Complacency. Many insurance stakeholders believe their current methods don’t need updating. Customers appear happy, so why fix what’s not broken? And insurance employees are the first to agree: Sixty-five percent don’t want to change how they manage accounts, according to the State of Mobile Experience study.

But as millennials begin to buy homes, your target insurance customer will no longer accept an apathetic approach to mobile adoption. Younger insureds have come to expect mobile as part of the buyer journey, no matter what they’re purchasing. That means your employees must adjust to new ways of connecting with policyholders in order to retain business and remain competitive.

2. Fear of change. Implementing a mobile strategy can be a daunting task. It requires the right budget, training resources and technology infrastructure. Technological innovations can also breed insecurities among employees who may worry technology is replacing them, rather than using these advancements to enhance their work: 43% of employees fear losing customer touchpoints and 39% lack comfort with mobile devices in general.

3. Legacy systems. Outdated technology tends to hinder mobile implementation as well. These legacy systems are so ingrained in agency and company operations that updates can involve a lot of red tape. Additionally, the insurance industry faces extensive regulations, considering the amount of personal information at stake. Individually, these factors can pose problems; collectively, they result in a stalemate for many insurance companies and agencies.

Making Adjustments

But mobile demand outweighs these concerns, plain and simple. Today, it’s essential for your agency to invest in a mobile strategy to stay on par with the competition and become a leader. Otherwise, you run the risk of losing millennial and long-time customers. 

To ensure buy-in, you must first earn employee support by providing a trustworthy, on-the-go user experience that makes employees’ jobs easier. Adopting a strategic mobile presence is not a new business practice, but a cultural shift. It may not be easy, but modifying culture will be worth the effort.

After your employees are on board, the next step is addressing consumer needs. Understand your customers’ expectations. Knowing what they want and how you can service them more effectively is key. Agents who can inform or solve customers’ pain points through mobile solutions set themselves up for success with younger generations.

Unlike the bourbon industry, it won't take insurance providers years to implement a strategic mobile offering that serves both their employees and customers. It won’t be a quick fix, but with the right support and willingness to adapt, your agency can help the insurance industry keep up with the times.

Greg Ng is vice president of digital at PointSource.