What does Tech in the Insurance Industry Mean for You the Consumer?

With the improvements in insurance technology, more direct-to-consumer insurance companies are coming onto the market.

With direct-to-consumer, you can go directly to the insurance company online and purchase a specific insurance policy.

With this type of insurance buying, you’re taking on the entirety of your insurance on your own. This process does come with some complications along with the other factors that are now coming to the fore with the evolving tech in the insurance industry.

How are insurance companies evolving with tech?

Apart from the actual apps and AI integrations, you’ll see insurance-related businesses embracing other ways of the technological age. For example, we know that in the consumer market, people are making up their minds to do business with a company before they even contact them. So, you’re looking at companies that have built a professional brand. These companies are not just interested in the sale but also doing the work and delivering value.

Take Treadstone Risk Management, for example. We’ve started our Podcast – Call Your Broker – and our website blog to educate business owners and consumers alike about the various aspects of risk management and insurance.  We’re putting out useful information so everyone can make an informed decision when it comes to insurance and risk management.

More of a Podcast Listener?  Check out our episode on this topic here: https://anchor.fm/call-your-broker

More of a VLOG watcher?  View the full episode below:

Why the human element is still important in the insurance process

We’ve worked on a case where a client got a quote from a direct-to-consumer insurance sales company. In hearing the price quoted, we immediately knew that he could get a lower quote and why his initial quote was high. The policy quote was credit-rated based on him being the primary applicant. We knew that the wife had a better credit score and set her as the primary applicant instead.

They were able to save a few hundred dollars on their insurance. These are just some of the nuances that AI and some of the tech in the industry cannot account for currently. And also the reason why it’s important to speak with an insurance agent.

Direct writers offer value. But in this process, the client focuses on price and doesn’t look at the other essential elements. The client won’t know what they can get or the different options available.

So why work with a broker if you can go straight to the source?

Insurance is not a commodity. It is a complex contract. What are you looking to get out of it, and what you’re actually getting can be vastly different. It’s often better to pay the premium for the peace of mind to know that you’re fully protected in the areas that you want to be covered.

Insurance requirements also evolve at the state and federal level. An insurance broker can help you keep abreast of the changes and requirements for individual and business insurance.

It’s also difficult to navigate the right insurance and know what carriers want to write specific types of business. Further, not all businesses are the same and need the human factor to help understand what’s required for each business vertical.

So, for us, technology is not used to remove ourselves from the process. It is to free up time for high-level strategic initiatives that can benefit you, our clients. Therefore, technology in the insurance industry does not negate the need for one-on-one communication with your agent. So, call your broker today and let’s discuss what insurance needs you can meet through technology, and what added-value we deliver.