Part five of our series exploring the need for the Hybrid Distribution of life insurance products.
Over the past few months, we’ve been publishing a chapter at a time of our eBook on Hybrid Distribution. We’ve covered what exactly Hybrid distribution is, the role that data plays, why it’s the right choice for smaller carriers and fraternals, and the expected ROI.
In the fifth installment, we’re covering what Advisors think of Hybrid Distribution, how it can benefit them, and a snapshot of how younger advisors are leveraging technology.
When the first wave of InsurTech solutions hit the market, they went head-to-head with Advisors. Brands like GEICO and Progressive made it possible for consumers to purchase insurance products without ever having to speak to a human being.
But more recently, a new wave of best-of-breed providers is offering “enabler” technology. Rather than competing with Advisors, their role is to support and empower them.
“Advisors always have and always will play a critical role in generating leads and business for life insurance carriers,” said Jeffrey. “As they say, ‘life insurance is sold not bought.’”
Purchasing life insurance is a major decision for customers. They need help understanding their needs and policy options. According to research by the Boston Consulting Group and LIMRA, most North Americans say conversations with Advisors are vital to the purchasing process.
But technology can make those conversations more efficient and impactful for all parties. The right tools can also streamline customer onboarding, simplify underwriting and claims processing, and bring about greater transparency for all parties.
Many Advisors are hungry for solutions that will make their jobs easier and more profitable. In a recent survey from McKinsey & Company, 44% of Advisors said the top way carriers can support them is by offering tools that improve the customer experience.
Snapshot: How Younger Advisors Are Leveraging Technology to Grow Their Business
Younger Advisors who grew up with technology are especially aware of its possibilities. Here’s how they’re using digital tools to help more people get the protection they need, according to a recent survey of the insurance consulting firm Novarica’s 400 Under 40 private networking group.
Create a Digital Brand
Most younger Advisors say referrals and face-to-face networking are their top methods for generating leads and new business. But a subset of the survey’s respondents said they’re investing more than 90% of their outreach efforts in online marketing.
They’re using social media to create a personal brand that demonstrates their expertise and value. Instead of being limited by geography or how many doors they can knock on in a single day, they use technology to reach more leads at once, amplify their message, and exponentially scale their business.
Use Data to Drive Engagement
Best-of-breed Hybrid Distribution solutions give Advisors instant access to an unprecedented amount of data. Younger Advisors are using these insights to drive conversations with leads and help them make the best decisions about their premiums and coverage.
Provide Better Customer Service While Building Their Books
Instead of spending hours on tedious administrative tasks, younger Advisors are using digital tools to quickly and easily answer client questions, perform needs analyses, and send quotes. This leads to a massive increase in Advisor productivity and policy sales.
“Every life insurance Advisor deserves a better user experience,” said Jeffrey. “Today’s Hybrid Distribution solutions are designed to make it easier for them to build their books and serve their existing customers. At Breathe Life, our platform has received a nearly 95% Advisor approval rating.”
You can download our full Hybrid Distribution eBook for free here.