Running an insurance business can be quite lucrative, provided that your operations are efficient enough. However, being an insurance provider is definitely not the same as being a regular vendor or retailer. The product that you’re selling is a lot different than in other industries, seeing as how every offer (and your interaction with every client) is quite unique. Does this mean that the rules that work in other industries no longer apply? It’s not that simple. With that in mind and without further ado, here’s how you can improve your efficiency as an insurance provider!
1. Retention is more profitable than acquisition
The starting fact you need to base your strategy around is the fact that about 20% of your regular customers make about 80% of all your profit. In fact, just 8% of regulars make almost 40% on their own. Moreover, it costs you five times less to make a former customer return than to make a new conversion. Overall, while you can’t have return customers without first-time customers, you need to get your priorities straight. This means investing more creative energy in coming up with a great follow-up, perhaps even starting a loyalty program.
2. Intuitive experience
One of the things people hate about insurance is all the paperwork. Sure, even though users understand that this is a necessity when dealing with complex bureaucratic processes, they still hate the idea of being the ones who have to deal with it. So, to make your program more appealing, all you have to do is ensure that you minimize user input. In other words, the less you need from the user, the more they’ll appreciate you. Moreover, with the right insurance distribution software, streamlining the entire process becomes a lot easier. Overall, an intuitive dashboard, optimized mobile experience, and automation can drastically improve your workflow.
3. All the data in one place
Data analysis and data harvesting are at the very top of your priority list. Fortunately, with the help of cloud-based storage, big data, and present-day analytical tools, this really shouldn’t be that much of a problem. Reliable software can get you out of the majority of these situations. Keep in mind that, as an insurance provider, you now have police, medical, and other records at your fingertips. This makes it easier to make a customer profile and make a more accurate risk assessment. Overall, you’re in a better spot than you ever were in the past.
4. Automated reminders
Previously, we’ve talked about return customers, now, the key to follow-up is a timely engagement. Namely, you don’t want to be too annoying or engage them long before they need your services or before they’re ready to take the next step. Instead, what you want is a workflow automation software with automated reminders. This way, you will never miss an opportunity for an optimal engagement. Keeping these notifications descriptive and accurate (through categorization of leads) can also help maximize the efficiency of your efforts.
5. User-specific access levels
When doing business with insurance, you’re dealing with a lot of sensitive information. A leak here could spell doom for your enterprise. At the same time, restricting access to your staff could lead to quite a high inefficiency. So, the way to proceed is definitely to choose a user-specific access level. Not only will this increase the overall security within the enterprise, but it will also minimize distractions. In other words, you get higher accuracy, better time management, and a lower likelihood of a slipup. A lot of confusion within businesses comes from the confusion about the specific responsibilities. This helps solve this for good.
6. Focus on the loss ratio
One f that has the biggest impact on the profit of any insurance business is the company’s loss ratio. This is the premium paid divided by the cost of claims insured. You need to focus on this every time you are renewing a policy for someone. Previously, we’ve mentioned the importance of data analysis as a way to predict this before making a commitment. This is also the factor affecting the variability of insurance costs. This has to be adjusted accordingly. However, to do this fairly and efficiently, you need to have decent analytical software and insurance industry veterans on your side.
7. Improve your recruitment process
As we’ve stated in the previous section, the people you work with determine your operational efficiency. It’s that simple. Also, we’ve previously mentioned that an unreliable staff may lead to a security leak. What you need to do instead is improve your prospecting efforts. You can ask for referrals, reach out to local universities, or even look for candidates with a background in sales and hope that they’ll make a great transition. During the hiring process, you need to pay attention to their attitude and even look for candidates on social media (in order to get a glimpse of who they are).
By abiding by these several simple rules, you can easily make a difference in your bottom line, as well as the reliability within your organization. As an end result, your entire organization will grow exponentially and you’ll get to thrive as an enterprise provider. Also, bear in mind that all the above-listed tips are scalable. This means that as you expand your operation, these methods (deeply engrained in your business model) will keep up. It’s like laying a solid foundation for your future success.