No matter how tough times may get, these types of businesses exhibit inventiveness, flexibility and tenacity, enabling them to grow into the future. We’ll explore the top four obstacles that insurance companies are now dealing with in this article. Before you’re able to start making changes from the ground up. It’s important to understand some of the biggest threats that agencies face. With this knowledge, it’ll be easier to develop a well-rounded business strategy, focused on overcoming the most prevalent industry challenges.
1.Increased Market Competition
Among other obstacles, smaller agencies must allow battles with intense competition. In the insurance industry specifically, there are some very large organizations who have access to an abundant number of resources, and marketing capabilities. Smaller agencies are at a disadvantage when it comes to available capital. So it’s important to focus on other distinct advantages. Some that come to mind include providing customized services, focusing on personalized communication methods. As well as displaying a deep knowledge of local markets or specific insurance niches, and much more. By honing in on the “little things” that large corporations don’t pay attention to, you can establish lasting relationships, and separate yourself from the pack.
2.Digital Challenges
The insurance industry is undergoing an evolution as a result of its shift towards digital operations. While digitized technology makes everyone’s lives easier, it also comes with various threats. In response, agents and brokers alike are forced to come up with tools to face these threats head on. One of the main digital threats is the increased number of cyber attacks. Putting important data and sensitive information at risk. In most cases companies are relying on insurtech products in order to secure their company’s and customer’s information at any cost necessary. There are also little things that every agency should be doing such as using double-authentication tools.
Another different, yet equally challenging issue is the transition to a fully digital operation. For agents and agencies stuck in their old ways, this can be quite the process. With all that being said, it’s vital that you adopt new technology now. Before your former way of operating becomes completely obsolete. While it might be difficult to learn these new methods at first, in the long run, digital tools will speed up your operations.
3.Changing Regulations
The insurance sector has persistent obstacles when it comes to industry regulations. Rules are changing on a yearly and even monthly basis, so it’s important to never fall behind. Independent agencies are especially vulnerable, and must pay close attention to new legal standards, as well as considerations based on their geographic locations and specific insurance products. In response, we encourage everyone to stay up-to-date by reading industry publications. Additionally, your company must be flexible and ready to make changes if necessary. If possible, it’s also a good idea to invest in a legal expert who is well versed in the industry. This way you’ll have ample time to recognize industry shifts, and make changes in tandem.
4.Lead Generation Issues
Lead generation continues to be an important but difficult objective for many agencies. In fact, a majority of struggling agencies cite it as their primary issue. In order to generate leads successfully, it is necessary to not only pique the interests of prospective consumers, but also to properly manage these leads, so they have the best chances of converting into sales. One tool that every agent should be utilizing is a Customer Relationship Management (CRM) system. This digital asset helps organize and manage leads, with automatic features like scheduling meetings, implementing follow-up reminders, segmenting consumers and much more.
It’s especially frustrating when you have a great staff, and strategy, but are falling short simply because you don’t have enough prospects. While many companies rely solely on their marketing team to help generate leads, another great option is to pair up with a trusted lead generation organization. For example, Benepath is a company that has been leading the insurance lead space for over 20 years. They offer a variety of insurance lead types, and a team of marketing experts to help you make the most of whatever you purchase. While there is an investment upfront, the guarantee of always having enough qualified leads will pay dividends in the future.
Final Thoughts
The insurance industry is always changing and evolving, and these four challenges simply underscore how important it is for your agency to be adaptable. By addressing these threats ahead of time, your agency will be put in the position to grow and succeed no matter what the industry landscape looks like.
If you’re an agent or broker and are interested in reaping the benefits of high-quality insurance leads, you came to the right place! Benepath offers leads that are exclusive and produced in real-time giving you the best chance at maximizing your sales. We offer leads for: individual health, group health, Medicare, life and commercial insurance. If you’re interested in teaming up and taking your business to the next level, just fill out a form or call us at 888-684-3121.
