If an agency is growing, programs in use are sufficient and satisfies the clients expectations , why would he change his current system? Why would he bother with additional costs and renewing system distress?
Who have plans for next 5 years or more it is inevitable to make digitalization. Digitalization is not only process that improves the ways of business, it also changes the culture of the companies. In the first part of article, we shared what should be considered at the beginning of the process.
Now, let’s explicit why changes are unavoidable:
1) SECURITY
Software and hardware protections are insufficient in most of the agencies. Rising the works done by softwares, cyber attacks, IT problems, laws and legislations, distance working, etc. digital security has become even more significant. (Recent some security breaches in insurance industry; withdrawals from customer credit cards by malicious persons, data breaches by ex-employees, to hack the programs in use and demand ransom.) Digitalization also includes appropriate electronic security protection. If the agencies do not implement this process they will face penalties as well as data and reputation losses.
2) EFFICIENCY
Current situation analysis and creation of new business model should be completed before the process begins.( we reduced the reconciliation time of renewal lists 90% in one project). Then, according to the new structure, digitalization of operations and processes could be started. Agencies will be more agile and competitive by updating their business models and improving their efficiency.
3) MORE EFFECTIVE SERVICE TO CUSTOMERS
Communication with the customers takes much time of the agencies. Therefore agencies have to plan which part of communication (notification of premiums, payment collections, etc ) should be transferred to digital platforms. Thus, agencies have more time to react changing and diversifying customer needs and finding new customers.
4) TECHNICAL NECESSITIES
Service providers decrease supports to old generation softwares and divert the users to their more developed products. Furthermore some agency softwares are not suitable to new programs of insurance companies. Hence, it is inevitable to improve and develop the current agency softwares
5) TO RISE THE SALES
Digital transformation can assist; presenting new products to current customers, analyzing the portfolio and finding new customers. Thus, it would be easier to grow the portfolio with new products and customers. If the agencies think digital marketing, they have to make different and detailed plans.
6) MONITORING AND CONTROLLING OF THE BUSINESS
Receivables from customers and debts to companies should be followed accurately and up to date. Agency records must have conformity with the customer and insurance company records. Thus monitoring lists (new customers, commissions, lost renewals, etc.) be followed very closely. The agency will be able monitor and evaluate the situation and performance of himself and his employees.
7) WEBSITE & SOCIAL MEDIA
Website is the screen of the agency in digital world. So designing of website is very important. The site must point to agency features and easy to access for agency services.
In the process of transformation, consider how to integrate social media platforms to your new business model.
Decision taken, budgets allocated, workflow analyzes completed, new business models created and reached the digitization stage. Hardwares, softwares, etc. there are too many options and all of them seem suitable.
What do you have to pay attention? How to make the right choice?
Rıza OYGUR
March 2021
