Insurtech companies are startups or established insurance companies that use technology to provide innovative and efficient insurance solutions. Typically, these companies target younger, tech-savvy customers.
These companies often use data analytics, AI and other new technologies to streamline their insurance processes and provide customers with personalized and cost-effective insurance products.
Similar to traditional property & casualty providers, insurtech companies offer a wide range of services, including digital insurance underwriting, policy management, claims processing and customer support.
Some examples of insurtech companies that fall under this category include Lemonade, NEXT Insurance and Bright Health. Insurtechs like these brands are expected to disrupt the insurance industry and may potentially reach a market size of $114 Billion by 2030.
Despite the increased competition from these companies, there are plenty of ways you can set your independent insurance agency apart from insurtechs.
1. Take a Personalized Approach
Perhaps one of the most distinguishable factors between insurance agencies and insurtechs is the ability to provide personalized service.
Instead of having a specific agent or team of insurance reps to help people, most insurtech companies rely on automation and algorithms to make decisions.
As an agent, you have the ability to form a personal relationship with your customers and the capacity to understand their unique needs.
Creating a personalized and lasting relationship can help build trust and loyalty with customers and can be particularly important for complex insurance products such as life insurance. You can keep things even more personal by sending your customers handwritten letters and occasionally even small gifts, swag bags and cards for special occasions.
2. Offer Pro Advice
Another factor that sets you apart from insurtechs — you have expert advice to offer.
While automated systems can be more of a convenience for shoppers, about 75 percent of people would rather interact with a real person for their customer service needs.
Unlike insurtechs, you and your team can serve your customers as a trusted, go-to resource for insurance knowledge, especially when it comes to helping your customers with complex insurance questions and situations.
3. Establish a Community Presence
Having a presence in your local community is one of your most valuable assets. Consider establishing relationships with local businesses and individuals with mutual interests (e.g., real estate agents, car dealerships, etc.) and involve yourself in community events and organizations whenever possible.
Not only can this leave a more favorable impression on potential customers, but community outreach may also help you find leads in places you’d least expect.
4. Build On Your Reputation
If you’ve been in business for a while, you may have an established reputation that should be more trustworthy than new insurtech companies.
Being that insurance can be a complex and sensitive topic for some people, it’s important to demonstrate a high level of trust between the client and the insurer.
Take advantage of positive reviews by giving customer shoutouts on social media and seeking more reviews to further cement your positive image.
5. Target Younger Demographics
Insurtechs often target younger demographics in the Millennials and Gen Z age range.
Time is especially of value to younger insurance customers — with many wanting quick and to-the-point responses. According to one study, 71 percent of Millennials said the most important thing a business can do is value their time, so keep this in mind with your conversations.
Try incorporating short videos, as well as – when appropriate – sprinkling some humor into your social posts.
6. Stay on Top of the Latest in Digital Marketing Trends
With so many insurtech companies relying on technology and automation to create personalized insurance plans to win over their customers, it’s important to stay on top of the newest trends in digital marketing.
At Melon Local, we’re always in the know when it comes to the latest best practices for online advertising.
Set yourself apart from the competition by signing up with Melon!