In the first half of 2016, over $1 billion of funding was invested in “insurtech” and, with over eighty deals, it is on track to be 42 percent higher than in 2015. Yet the agent-driven business model has largely missed the benefits of much of this innovation. Instead, direct-to-customer insurers have, so far, been the biggest beneficiaries.
This is poised to change. Today, insurance is a complex customer journey to manage. And there is a need for new digital ways to do business. We have seen how experiences offered by digital transformation unlock the opportunity for insurers to better protect customers at scale.
But when applied strategically to the insurer’s agent channel, digital advances (many pioneered by the direct-to-customer model) have the potential to enhance the agent’s value proposition by enabling collaboration, personalization, and efficiencies in service. Digital integration will simplify agents’ customer-facing capabilities, while driving preference for a new generation of agents searching for the easiest insurer to work with.