3 insurtech trends to expect in 2017

by | Dec 19, 2016 | Blog, News | 0 comments

stageBetween mergers and politics, insurance took center stage in the 2016. As we near the year’s end and begin preparing for the road ahead, it is clear that this spotlight on insurance will continue to shine in 2017. Next year, the insurance market can expect even more challenges and opportunities, particularly in health care, all of which will greatly influence the way insurtech approaches consumer and business pain points. Before ringing in the New Year, we’ve looked ahead to the top 3 insurtech trends to expect in 2017.

No. 1: Year of the Smart Shopper

Consumers today are more empowered than ever before. New technologies give consumers access to an unlimited supply of shopping information, and many are discovering creative ways of interacting with retailers. Today, 8 out of every 10 shoppers’ purchasing decisions around the world are informed by a digital device, indicating that consumers are searching beyond traditional means to be more informed.

In 2017, we will see this trend transcend industries, primarily in health care, an industry that has been moving toward a consumer-centric model of decision-making and a retail-oriented way of doing business. This is especially true in the world of health insurance, as consumer expectations of their health plan providers have changed. Consumers are beginning to realize that they can expect the same level of satisfaction and responsiveness in insurance that they could out of any other industry. As a result, insurance consumers will continue to shop around until their demands are met.

No. 2: Rise of digital insurance technologies

Digital technologies will have an outsized impact on the health insurance industry in 2017. The shift to a hyper-competitive marketplace means that all insurance stakeholders must improve the consumer’s digital experience to keep consumers coming back to their services. In health insurance, simple and modern technologies that make the complicated process of selecting coverage transparent, trustworthy and efficient will dominate the marketplace next year.

Innovative companies that develop integrated digital capabilities will open up access to a large subset of consumers, particularly millennials and young consumers who rely heavily on online and social tools to make purchasing decisions. Sixty-eight percent of millennials actively seek a shopping experience that is integrated and seamless, regardless of the channel. Engaging digital experiences are no longer the exception; they are the norm.

These technologies will also continue to transform the health insurance investment landscape. According to Modern Healthcare, heath-insurer and insurance technology startups raised more than $1.2 billion in venture funding in 2015, more than double the $570 million that was raised in 2014. This number is expected to further rise in 2017.

No. 3: Resurgence of the broker

2017 also will be the year of the broker. For small businesses and small business owners who are unsure about whether their employees should remain on a group plan or move to the individual marketplace, brokers are an essential piece of this complex puzzle. For such decisions, brokers are a source of expertise and a resource to simplify the decision-making process. Already, almost 75 percent of small businesses rely on brokers to help them evaluate their health insurance options. This will be further reinforced by the tools and technologies that will become more readily available to brokers in 2017, allowing brokers to better serve their client needs.

Given the anticipated regulatory change in health insurance, particularly around a partial repeal of the ACA under Trump, brokers will become an even more integral part of the consumer’s decision-making process. In all times of uncertainty — in insurance or otherwise — advisors and thought leaders have an opportunity to guide consumers. In 2017, we anticipate that brokers will not only continue to remain central to insurance services, but grow their opportunities as the go-to experts in a time of uncertainty.

This post originally appeared in LifeHealthPro.

3 Startup Values Brokers Need to Adopt

by | Dec 5, 2016 | Blog, News | 0 comments

hoodieStartups are known for their innovative workplace style, perks and culture. In fact, a recent Inc. article touts workplace culture as the main reason employees will miss their former place of business long after they are gone. Creating a nurturing work environment with like-minded individuals is a key component of any startup’s success, but can also be applied to they way in which client relationships are forged and supported.

When it comes to the broker industry, a lot can be learned from the startup mentality. In order for brokers to succeed in this rapidly changing landscape, here are 3 ways brokers can elevate their client interaction by taking hints from world of startups:

Find a cultural fit. A big perk to a startup is the emphasis of culture. Taking the time to hire based on cultural fit is a detail that helps small work places like these thrive. The same philosophy can be applied to the world of benefits.  In order for brokers to empathize with their client’s needs, they must immerse themselves into their culture and provide health care plans that are right for them. In today’s health insurance landscape there are many new boutique plans that offer unique benefits like discounted or free health club memberships, acupuncture, and massage therapy. Listen to your clients, observe their culture and recommend unique benefits that are right for them. They’ll appreciate your attention to detail.

 Strive for transparency. Transparency provides intrinsic value to a startup given that it provides a lean company with the agility they need to make efficient decisions and collaborate with the populations they wish to serve. Startup communication strategies are a prime example of this. What startups do so well in their communication strategy is their ability to find more efficient and transparent ways of communicating while remaining personable and engaging. Part of that is meeting your clients where they are. In this technology-based world we live in, clients are yearning to spend less and less time on the phone when it can be done quicker or easier online. Having this online presence to communicate with your client makes for a more interactive experience, engaging them each step of the way and providing easier accessibility to a topic that is often daunting and confusing, like insurance.

This isn’t all startups provide to their clients online. Many show prospects their pricing model and provide demos of the services they provide. Starting the client relationship with a baseline of transparency not only helps to better serve the client, it also benefits the business by being able to deliver solutions to their pain points faster.

Invest in technology. For the vast majority of startups, technology is their business. Providing innovative solutions for their industries problems requires upfront investment in technology that can bridge those gaps. For many startups this represents nearly 30% of their internal team and the majority of their payroll. And for those startups that aren’t building it themselves, they are partnering with others that do. Investment in technology is no longer a luxury, it’s essential for businesses to adapt and grow in increasingly competitive markets. Startups get this, and take it one step further. They don’t just embrace technology; they get excited by it. The broker industry is catching on, but in order to stay ahead of the curve, it will take more than just understanding technological advances being made in the insurance industry, it will mean adopting them.

The client relationship is the bedrock of the broker business. This highly competitive market means that every day brokers are not only proving their worth to obtain clients, but displaying their worth to maintain them. In turn, clients rely on the expertise of their brokers, entrusting them with large emotional and financial decisions for their businesses and families. Learning from the nimble nature of startups only works to make the most of the ways in which brokers are already excelling, and stand out.

This article was originally published on BenefitsPRO.