The world of insurance is incredibly traditional. At times, this is a good thing. Independent brokerages believe in the personal touch, forging deep, lasting relationships with clients. But, in other ways, relying on what’s tried and true is a hindrance, especially when it involves a lack of digitalization.
Many brokerages are slow to incorporate new technologies. While you don’t necessarily need to embrace every emerging solution that arrives, a lack of digitalization can hold you back. Not only can it cause you to spend more than you need to; it can also mean missing out on revenue-boosting opportunities.
If you are wondering how digitalization can reduce costs and increase revenue, here’s what you need to know.
What Is Digitalization?
Digitalization – also known as digital transformation – is the process of introducing technologies into your business that provide you with new opportunities. This includes capturing cost savings, increasing revenue, or boosting value, all through the use of technology solutions.
While the most obvious incarnation is digitizing paperwork, that only scratches the surface. Digital transformation includes implementations that boost efficiency, accuracy, and profitability through technology.
How Digitalization Reduces Costs and Increases Revenue
Better Customer Experience
Today’s customers don’t just want excellent service; they want convenient solutions. The population gets more tech-savvy by the minute. They rely on technology tools to make their life easier. Whether it’s communicating via chatbot, setting up automatic payments, or gathering information, being able to handle their lives online is a priority.
By embracing digitalization, your brokerage can offer more of what customers are after. It’s a quick way to improve the customer experience. With technology, you can make it easy for them to review their policies, track payment due dates, and pay on time, simplifying their lives as well as yours. That’s all good stuff, and it can help cement your reputation as a tech-savvy provider.
Less Paperwork and Manual Input
Let’s face facts; manual data entry and physical paperwork are tedious to handle. Re-entering information into computer systems takes time – time you could otherwise spend on other activities.
With digitalization, you can reduce the need for cumbersome data entry, relying more on digital forms that customers can complete themselves or scanning technologies that automatically upload the data. Time saved is money saved (or earned), making it worth exploring.
When you embrace digitalization, you have the opportunity to increase your accessibility to critical information. By using cloud technology, you can access your data at any time from nearly anywhere. As long as you have an internet-ready device, you can handle everyday tasks while in the office, on the road, or from home.
Plus, it keeps your data centralized. You’re using one platform no matter where you are, keeping everything consolidated at all times.
Lower E&O Risk
Errors and omissions (E&O) can spell trouble for brokers. Not only can it mean working with inaccurate information, but it may also lead to E&O claims. Claims of negligence, breach of duty, or similar issues hurt your reputation and bottom line; it’s a double-whammy.
With digitalization, you can reduce E&O risk. You don’t need to enter data from paper records or transcribe conversations. Instead, the tech can do the bulk of the work. All you’ll need to do is a quick review, allowing you to ensure important details are captured, and the highest level of accuracy is achieved in less time.
Independent Agencies: Looking for More Great Tips?
At ePayPolicy, we understand the importance of reaching your peak potential as a brokerage. If you’d like to see more tips about how brokers can reduce costs and increase revenue with digitalization, we’ve got you covered. Follow us on Facebook for more tidbits, tricks, and insights.