In this article we’ll look at how to launch a new insurance product.
Climate change has intensified wildfires, flooding, and hurricanes, and the situation is only expected to worsen.
However, major insurance companies are frequently hesitant to insure customers in disaster-prone areas.
Many companies have the opportunity to launch new insurance products tailored to customers’ changing needs in these difficult-to-insure markets.
New items can help a company differentiate itself from the competition and increase profit margins. However, successful distribution necessitates a plan.
In this article, I will briefly explain three strategies on how to launch a new insurance product:
- Collaborate with local independent agents.
When selling niche products, businesses may encounter difficulties. They may have difficulty connecting with – or even locating – the appropriate market.
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Customers may be unaware of new insurers in their area, implying that those insurers will lack the visibility that comes with brand familiarity.
The approach is to work with local independent agents who are familiar with the needs of their areas. Agent collaborations can assist boost product awareness while also increasing visibility and confidence with prospective buyers.
Local agents are especially useful in hard-to-insure areas. For example, an agent serving a high-risk wildfire zone can assist consumers in obtaining homeowners insurance by providing advice on wildfire mitigation measures.
The capacity of independent agents to develop true customer relationships is their greatest strength. Personal connections are used by agents to: generate trust.
When customers connect on a personal level with a local insurance specialist striving to discover the coverage that best matches their needs, they will develop relationships and trust.
Provide tailored insights. Artificial intelligence chatbots can only go so far. Agents can give insights targeted to customers’ specific needs by getting to know them as individuals.
Increase consumer loyalty. Pricing is one factor that distinguishes many businesses from their competition. Customers, though, may leave if prices alter. Human touch gives you the competitive advantage you need to keep clients coming back.
Companies should consider agent partnerships as long-term investments. Agents may have carrier relationships that allow them to market products other than yours.
Customers are more inclined to continue with the same agent when purchasing multiple policies.
Because that agent is your partner, your company gains access to a loyal customer base that you might struggle to win over otherwise.
Over time, agent collaborations can improve your client retention rate while also increasing overall income creation.
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- Make use of technology to fuel your distribution.
Local independent agents might serve as the foundation of your new product sales. However, a paper-based approach will impede their efficiency and slow your market penetration. Your agents will require the appropriate technologies to distribute your product on a large scale.
As an extra bonus, digital technologies enable your agents to provide consumers with a seamless experience that will keep them coming back.
What technology can help your agent partners get the best results? They’ll need access to stuff like:
Powerful CRM software. CRM software enables your agents to centralize client contact information and automate repetitive operations.
Online applications. A computerized, streamlined application procedure makes it easier to collect and maintain critical consumer information.
IT infrastructure. When your agents encounter technical issues, a strong IT infrastructure can handle support queries, service interruptions, and bug patches.
With this technology at their disposal, agents may save time on tedious duties and provide rapid, personalized service to their consumers.
- Improve your back-end support
Agents should not have to worry about other essential business processes when marketing their new product. Provide back-end support to your agents so they may focus on the day-to-day tasks that drive distribution.
- AI-powered rating and underwriting systems
- compliance and auditing tools are examples of appropriate support.
- Commissions tracking and statement storage through the cloud.
- Help with digital marketing.
- Automation of processes.
- A security architecture based on zero trust.
You free up your agents’ time by handling things on the back end, allowing them to focus on creating and improving customer connections.
Companies can get an advantage over major competitors by distributing items in difficult-to-insure areas. However, the product is not everything.
Companies need the correct distribution model to succeed, and the key is local agent partnerships.
Although some industry observers have portrayed agents and companies as adversaries, the reality is that they can be effective allies.
When businesses provide independent agents with the correct technology, they will have the tools they need to develop long-term customer relationships.
Customers will trust your product if they trust your agent partners.