A big transformation in our industry is on the horizon—and the changes it is bringing are creating great opportunities for all players in the market. During a recent conference the course of the conference, this message surfaced in several ways:
The keynote speaker, Michael Hyatt, did a great job of walking us through Change—as a broad challenge that impacts all of society. He described how, generations ago, when modern elevators were first developed, they rendered the old elevator operators obsolete. Just as, when the first ATMs appeared, it seemed that the thousands employed as bank tellers were at risk. But guess what happened? Those staff put at risk by disruptive technological innovation transitioned into better, more challenging roles. So, upheavals can and do create anxiety, but they also bring with them the possibility of transformation—an opportunity to uncover a new, better way to work and live. And the same is true in our industry as it undergoes its own evolution.
Technology creates deeper advisor and client relationships
In order to thrive during and after the digital transformation, MGAs will need to start the process of redefining the way they bring value to their clients, the advisors. Disruption has changed the traditional value proposition of the MGA and, in some instances, started to render it obsolete—just like those elevator operators. The slow but inevitable adoption of electronic applications (eApps) means there is less and less MGA involvement in policy processing, so advisors have a reduced need for MGA support in that area. And, while the old school perks like conferences and events can still be important, instead, advisors are really hungry for a business partnership. They want support in serving their clients in the best way possible and growing their practices.
Technology is a lever MGAs can use to help advisors achieve their goals, and in doing so, create even stronger and deeper advisor relationships. In fact, as one speaker pointed out it is useful to take a moment to think of your organization, not as an insurance company, but as a tech firm. This alternate way of thinking changes your frame of reference and may just point to unforeseen possibilities for your future—perhaps suggesting ways you can work with your vendor partners to collaboratively provide more value to advisors and clients and deepen those relationships.
As Michael Williams, President of CAILBA, put it:
A glimpse of the future
At Equisoft, we work with our partners and all industry stakeholders to innovate and create the solutions that carriers, distributors, advisors and clients need to thrive in the ‘new normal.’ The amount of data that flows through our solutions puts us in the enviable position of being able to apply predictive analysis to generate greater business insights and drive value throughout the eco-system. This leveraging of huge volumes of data by analytic engines and machine learning, is a precursor to real AI emerging in our industry. And it’s only one example of how we embrace open systems and free data flow to benefit all the players.