Article highlights: #
- What are the barriers to digital transformation for insurance producers in Latin America
- How does the lack of technology and reliance on traditional methods affect insurance producers in Latin America?
- What solutions can help improve insurance producer engagement?
- What is the role of expertise and talent in achieving digital transformation for producers?
- How can insurers better support producers with digital tools and technology?
LATAM Insurers continue to face a highly competitive market and an increasing need to strengthen agency relations to drive more production. How are these relationships being built in conjunction with the ongoing digital transformation of all industry stakeholders? In particular, how is the transformation affecting agents and agent experience?
To find the answers, Equisoft commissioned Celent, in coordination with COPAPROSE (Pan-American Confederation of Insurance Producers), to conduct a survey of 700 producers from 24 Latin American countries that covered issues related to technology, digital transformation, and producer behaviour.
What emerged was a nuanced picture of an ecosystem in flux‒with differing demographics approaching sales challenges from different points of view.
Barriers to Digital Transformation for Insurance Producers in Latin America #
‒Juan Mazzini, Principal Analyst and Head of the Insurance Practice for EMEA, APAC, and LATAM, Celent
The main takeaway from the study is that insurance producers in Latin America face a significant barrier in achieving digital transformation: they lack expertise in choosing and implementing the best advisor tech stack. Many producers feel that they lack a methodology to assess the scope and goals of their digital transformation programs. This leads to solutions that do not serve the client and a lack of progress when it comes to increasing efficiency and productivity. If advisors are not able to get ahead of the digital transformation curve they will increasingly lag behind the evolving expectations of their potential clients.
Lack of Technology Tools and Traditional Methods are Challenges for Producers #
While most insurers provide online quotation and submission tools, producers are now demanding more mobile tools to improve their business experience. And the research shows that advisors feel they are being held back by a lack of solutions coming from carriers.
For many advisors, the mindset, not the solution set is the biggest challenge. The study found that most producers in the region are still more likely to engage with clients in traditional ways, such as phone calls or in-person meetings, rather than relying solely on technology.
Producers are more like to engage with clients in traditional ways #
‒Insurance Producers in Latin America: A call for improving their business experience, Celent
Opportunities for Improving Advisor Experience #
Recent years have shown that producers are determined and adaptable by nature. They will adopt better solutions as they come along—if the new tools and processes definitely demonstrate that they increase productivity, help build deeper relationships and reduce frustration.
Increasing channel complexity and regulation is creating opportunities to improve the agent experience and reduce costs. And integrated, advisor-specific digital tools that are now available can help producers digitalize their practices and create value.
Robust CRM solutions that are tailor made for a producer’s needs can optimize marketing efforts, accelerate the sales process and streamline service. When integrated with planning and analysis tools they reduce client effort and maximize the quality of the solutions that the producer is able to offer.
Equisoft, a leading provider of life insurance solutions, can help insurers with their digital transformation journey. Equisoft's modern, end-to-end life insurance solutions enable rapid digital transformation and solve data silo issues and legacy system challenges.
All of these tools should be mobile capable and able to integrate with the illustration and eApp solutions that make new business development a smooth, quick process.
Wrap up #
While insurance producers in Latin America are still facing challenges in achieving digital transformation, implementing the right expertise and digital tools can jumpstart their digital transformations. Taking the next step in the digitalization of their practice can enable producers to find and close more prospects, increase client engagement and create more value in their business. I predict that insurance advice is poised to dramatically evolve in the next few years‒and those producers who embrace the change will see significant rewards.