Getting Advisors on Board With Change
This is the 3rd article in a 3-part series on change management within the insurance industry.
Advisors in the field or in offices nationwide are some of an insurance company’s best assets. Whether they’re employees or independent contractors, they represent your company’s public face to the end consumer. When promoting change management and leading the implementation of InsurTech throughout your organization, we can’t ignore the importance of getting advisors on board.
Research has shown that most advisors are concerned about how new technology impacts their job performance, their commissions, and their future. Resistance to change doesn’t come out of nowhere, or from a desire to be contrary. If someone is resistant, it usually comes from a place that makes sense to them. They’re likely concerned that the change could be harmful to their role in the organization. What’s more, a high percentage of advisors are close to retirement and those who plan to retire soon are often reluctant to change the way they work, let alone be open to learning new technologies.
When beginning a relationship with a new carrier we suggest that they begin the conversation with their advisors by promoting how InsurTech will help them reach untapped markets and close more sales in a faster and more effective way. We’ve heard from brokerages that advisors are reluctant to sell life insurance products because they are complex and require a lot of paperwork and back and forth. Providing them a tool to do this digitally solves this. Efficiencies in the selling process translate into higher profit margins for advisors and make smaller policies more cost-effective. Capturing new market segments through tools which reduce costs is a win-win for advisors. According to PWC, one of the biggest benefits from InsurTech is cost reduction, which frees up time to sell more and drive higher sales.
A platform such as Breathe Life also requires little to no training.
This has been seen as a big plus by our partners because more often than not, bringing in technologies that are complicated and have a high learning curve ensures a resistance to change. On top of being easy to use, Breathe Life streamlines applications, gathers and analyzes data faster, and helps underwriters return faster decisions. Adopting InsurTech tools help advisors better meet the demands of today’s customers, who don’t want to wait weeks or months for an underwriting decision.
As well, it gives advisors better policies to offer the end consumer.
Consumers today have made it clear that they want policies which are tailored to them.
In my last post, I discussed renters insurance company Lemonade and how it’s a la carte policies are helping them rapidly gain ground among millennial renters. In a few years, there may be no such thing as a standard insurance policy. Using the information gathered by Breathe Life’s platform actuaries could eventually create products which better address a consumer’s lifestyle and mindset.
Over the last three weeks I have looked at how important change management is to today’s insurance executive, how the shift to a consumer-centric focus is pushing this change along, and the importance of getting your advisors onboard. Do you have any tips or comments for executives on how to approach change management? This is top of mind for many in the industry so I’d love to hear your thoughts. Comment below!