Over the past several years, most insurance agencies have shown amazing adaptability and tenacity in overcoming various challenges, particularly the pandemic's effects and its economic repercussions. Systems and capabilities were improved, while agile talent and technology strategies paid off. Following this, the global economy is seeing an unexpected economic slowdown, requiring agencies to work harder with fewer resources.
Data automation will play a central role as we transition into a new normal where productivity and efficiency are more essential than ever for an insurance agency to survive. Through data integration and automation, agencies can empower their data to work for them, ensuring that agencies keep their competitive advantage. When implemented correctly, the utilization of data, especially during a recession, can enable insurance agencies to get more done with fewer resources and come out of it stronger than ever.
The first and most noticeable effect will undoubtedly be a decline in the market for insurance products. While optional add-on features in insurance products may become less popular as clients seek to reduce costs, general insurance products are less elastic since they offer clients critical coverages they require. The insurance business will likely become much more competitive, not just in terms of pricing but also in keeping clients through superior customer service. The immediate answer some agencies may choose to adopt is to throw money at the problem and invest in new technology that will help them maintain their competitive edge. However, this is not a sustainable long-term solution.
Agencies looking to accelerate out of the recession need to focus on maximizing the investment made in their existing tech stack. Since some agencies are not confident they are utilizing the tools they have invested in correctly, their focus should be on ensuring that the implementation of these systems allows agencies to get the most value out of the technology they invest in. The key to recession-proofing an agency's technology stack is having the core pieces of technology do more than they bargained for. By deploying a powerful Data Integration Hub (DIH), insurance agencies can get the most out of their insurance tech stack and reap impressive returns with less effort and investment than they thought.
Employee buy-in is necessary to streamline internal procedures and remove inefficiencies. However, workforce reductions can lower morale and negatively affect performance. The fact that the surviving workers are frequently required to take on extra work is a major factor in this underperformance. This tends to leave them feeling burnt out, undervalued, and unmotivated.
Data automation does the opposite — employees are enabled to do more with fewer resources and spend less time on tedious, manual tasks during the workday. By enabling organizations to overcome the constraints imposed by laborious manual procedures, Synatic's Data Integration Hub (DIH) makes it easier for agents and brokers to connect disparate and siloed systems and automate manual processes, which in turn, lowers the possibility of omissions, duplications, and errors. Agencies that choose to innovate and leverage their data to work for them can combat burnout and provide their teams with a great technology experience.
Hyper-personalization becomes a crucial tool with the looming recession if an agency has data that indicates a client is facing financial difficulty and considers canceling their services. By using first-party data to identify the optimal course of action for the client as opposed to general offers sent to the vast majority of clients, insurance agencies are increasingly using hyper personalization to set themselves apart from their rivals. This necessitates a quick and comprehensive overview of the client’s policies, claims, calls, age analysis, unpaid invoices, etc. Synatic brings together ETL, Integration, API Management, and Warehousing into one solution to create a tool that is nimble, simple, and powerful. Insurance agencies can upgrade their outdated policy administration solutions, link their CRM to better understand their clients, develop their data lake or warehouse, or add APIs to connect customer portals to create a unified view of the client.
Insurance agencies are experiencing significant levels of anxiety over an impending recession. Soon enough, accessing different carriers and obtaining quotes won't be enough to support their continued existence. Instead of just having access to information, they will need to provide knowledge and assistance to provide value for their clients. This is why a recession presents a great opportunity to examine your agency objectively and identify areas for efficiency improvement. There is an inherent risk in making any significant investments during an economic downturn, therefore, optimizing core insurance systems through intelligent data integration helps drive automation which improves operational efficiency and reduces cost. This is one of the few ways insurance agencies can survive because of the cost-saving benefits a DIH offers.
The business world is cyclical. There are periods of expansion and prosperity as well as periods of recession and adversity. No company is immune to these ups and downs, but intelligent, strategic data automation may allow your agency to minimize the negative impact of the recession as much as possible. To learn more about automating your data so that your agency can withstand whatever economic storms 2023 has in store, contact Synatic today.
