Going digital can help agencies retain relevance in the P&C insurance industry
Agents and brokers traditionally had the upper hand in property and casualty (P&C) insurance distribution. However, this trend changed over the last decade with insurers altering their distribution model and interacting directly with customers through online channels. This shift has diminished the role of agencies in the insurance value chain and the ongoing COVID-19 crisis which is compelling insurers to connect directly with customers through no or low touch channels has not helped. So, how can agencies remain relevant? Transforming into digital insurance agencies is the answer.
The ability to reinvent business models to adapt to an increasingly digital world will determine the future of insurance agents. Rapid digital transformation of insurance agencies has thus emerged as an imperative. Digital, self-service, personalized offerings, operational agility, and flexible working models are the key levers required to transform into digital insurance agencies. To make this a reality, insurance agencies will need to:
- Expand digital capacity
- Embrace analytics
- Adopt agile methodologies