Insurance brokerages that are still manually managing their commercial lines applications and renewals one by one are leaving time and money on the table, according to Applied Systems, which is helping brokers see exactly how much time and resources they could save by automating these processes with the Commercial Lines Time Savings Calculator.
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The benefits of implementing an automated application and renewal process are manifold, and include the ability to win and retain more commercial insurance business, since offering a simplified application process for customers and prospects to complete can help to generate cross-sell/round out accounts and increase customer retention – and do all of this faster than manual processes.
Automation will likewise keep current customers happy, as brokerages can simplify the application response process by automating the data population across multiple insurer applications, in turn getting rid of unnecessary duplicate data entry for customers. This automated process also reduces the risk of errors and omissions, and by removing the need for duplicate data entry, employees will see less of their time wasted on navigating separate individual applications.
To drive home the many benefits of automating commercial lines processes, the Applied Systems calculator takes brokerages through a simple questionnaire that reveals the potential improvements they could see from introducing automation into their commercial lines applications and renewals.
For example, let’s say it takes four hours for a brokerage’s account managers to complete an average standard commercial lines renewal. If that brokerage completes 150 commercial lines renewals each year, and the average hourly wage of an account manager is $30 an hour – with the brokerage employing 20 account managers – that business is spending $360,000 yearly on application and renewal processes.
However, according to the Applied Systems calculator, technology can help reduce the time required for renewals and applications by half, leaving the brokerage with $180,000 in time and money savings value from going the digital route.
Implementing automation in complex commercial lines processes is just one way that digitally minded brokerages stand out from the competition. The 2020 Applied Systems Digital Brokerage Report revealed that digital brokerages more broadly experience greater monetary return – of 158% higher revenue per employee – than those that do not go down the digital path. This is because adopting digital tools lets brokers keep their eye on the prize – the customer – and selling as well as servicing them, rather than performing manual tasks.
