Rumor has it that an alarming number of organizations that were gifted a technology platform in exchange for their insurance business, are leaving within the first year. Why? Well, it seems the promised land of technology, with its time-saving advantages, may lack the "advocacy" required to help people when the world of insurance becomes difficult.
For example, the parents of a sick child who are denied payment for a potentially experimental medical procedure may not feel well served by simply being directed to call a carrier 800 number. Likewise, the owner of a new, collision-damaged, Mercedes may find that the ability to pull an auto I.D. card instantly online is almost worthless if the insurance doesn't pay for original Mercedes replacement parts.
But lack of insurance "advocacy" on the part of tech-based insurance providers is not good news for traditional insurance agents. It's actually more of a warning!
Consumers who leave a tech-based insurance relationship have absolutely no desire to go back to less-tech or paper-based services. Think about it... that's why they left their previous agent in the first place. These people have temporarily prioritized insurance advocacy over tech-efficiencies, but at the end of the day, they will not rest until they find a way to have both.
Time-saving technology and high level insurance expertise should be partnered. It's not "either/or," it's "both/and."
The insurance agency, or tech company, with a combination of great human talent, fueled by technology, is what insurance clients are looking for. Providers who possess "both/and" will certainly win over time.
Lynne Wallace is the CEO and president of VANTREO Insurance Brokerage and co-founder of NDOI, the National Directory of Insurance.
