Globally, over 90 percent of agents leave their organization to pursue opportunities outside the insurance industry. Thus making the agents onboarding process a continual recurrence for the insurance companies. Organizations, as well as agents, crave for easy onboarding instead of long trails of paperwork. Simplifying documentation and data entry right from the beginning can be a great win for organizations looking to improve operational efficiencies. And it is, in fact, possible to automate insurance agents onboarding processes.
Problems In Onboarding Insurance Agents
#Finding the Right Person
One of the major problems that insurance companies face is the agent’s intent towards making profits. There sure is the pressure of earning commissions forcing agents to sell policies that bring greater profits to them.
Insurance companies indeed need to find agents aligned with organizations’ ethics and not driven by personal benefits.
#Operational Cost in Recruitment
When an organization issues a circular for hiring agents, thousands of applications flood in. The human effort in shortlisting candidates is time-consuming and can increase operational costs by 30%-60%.
Automating ‘Traditional Onboarding’ Processes
Organizations can introduce an “apply online” portal where prospective agents can upload documents directly required for employment qualifications. Post this, the shortlisting of candidates can be automated, which is otherwise done manually even today.
#Check Authenticity of the Submitted Documents
Smart document scanners identify the authentication rules (holograms, unique id, etc.) and accordingly process it for the next steps.
#Sort and Cluster Documents
Document Classifiers can cluster documents based on their titles, IDs, and specific content within the document text, and structure the data in a relational/hierarchical repository.
This is equivalent to arranging agent documents in a paperless register with lightning-fast access for future references.
#Derive Target Data
The OCR Engines and Document Parsers can read and capture text from documents and store them in the required format.
A manual process will require reading the document, entering data in a register, and then calculating it. Sounds tedious (even if it’s on excel sheets), isn’t it?
#View Results According to the Selection Criteria
Dashboards allow viewing the output in a decision-ready format.
MaxBupa, a leading health insurer uses an automated solution to process inbound documents for qualifying insurance agents into their distributed-sales network.
Organizations can use some or all of these tools depending on how much they want to automate insurance agents onboarding. Custom workflow automation tools are available for enterprizes, and tailor-made considering the sophistication of the insurance industry.
For customized insurance agent onboarding software solutions, feel free to contact us at email@example.com
Join our Webinar — AI for Data-driven Insurers: Challenges, Opportunities & the Way Forward hosted by our CEO, Parag Sharma as he addresses Insurance business leaders and decision-makers on April 14, 2020.
The traditional model of agent-to-customer communication is not dead. 57% of Indian customers still prefer buying insurance policies through agents. Many a time, agents are the touchpoint between customer portal (technology) and the customer.
From an organization’s perspective, automated systems also ensure effective data management, which gives their agent easy access to customer information and company policies and documents; bridging the knowledge gap.
Removing the unnecessary layers of complexity and automating processes can help insurance companies interact with more potential agents and set stricter selection criteria.
Successful onboarding can help establish a strong relationship between agents and insurance companies. According to research from Brandon Hall Group, organizations with an efficient onboarding process can improve new-hire retention by 82%. Also, finding the right person for your organization can improve the agents as well as overall enterprises’ productivity by 70%.
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[Interview] Mr. Alex Jimenez | Digital Customer Experience in Covid-19 Times
The COVID-19 pandemic has brought upon an unprecedented change in our daily lives and routines. Consumer behavior is changing constantly. Lockdowns and social distancing have led to huge losses for businesses across industries. The world is heading towards an economic slowdown. Under these circumstances, organizations are facing many challenges to keep their businesses going. Insurers too are facing similar issues. Some insurance lines such as motor, travel, home have suffered a business loss due to low demand.
To understand the impact of this crisis, especially in the USA, we interviewed Mr. Alex Jiminez, Strategy Officer at Extractable from California, and learned more about creating better digital customer experiences in these testing times.
Extractable is a strategic consulting, design, and data analytics agency focused on the future of financial services. His other recent experience includes leading technology strategic planning for the office of the CIO, at Zions Bancorporation, and managing Digital Banking and Payments Strategy and Innovation at Rockland Trust. Alex has been named to several industry influencer lists in the areas of FinTech, RegTech, Blockchain, InsurTech, Innovation, and Digital Marketing. He has been featured in the Irish Tech News and the Independent Community Bankers of America’s (ICBA) Independent Banker.
The impact of COVID-19 pandemic in the financial services industry
What is the impact of COVID-19 pandemic in the financial services industry, and how is the industry responding to the ongoing crisis in the US?
In the wake of the current crisis, organizations are more focused on keeping the operation going, trying to set-up work stations for remote working, dealing with customers and working with them over digital platforms. But very few are focusing on the future which is preparing for the after-effects of this pandemic on the economy.
In-person communication is still an important mode of interaction with customers in the US banking sector. But now the issue is how to provide good services to clients? Some of our customers are going to experience digital models for the first time.
Organizations that have well-defined Digital Strategies and Customer-First approach will be able to provide good support to their customers. Organizations that are late into this space are more likely to face problems in the future.
How can companies reach out to their customers in this New Normal world?
We have already started to move towards a digital-centric world which is just going to accelerate. We will see businesses who have earlier ignored their digital capabilities will now build more on them.
The first video call was invented in the 60s and was not so appreciated as everybody thought it was expensive and complicated. Today we have FaceTime, Zoom but adoption has not happened on a larger scale. But this will soon accelerate. Customers will be comfortable dialing into a video chat with their Insurance agent.
I don’t believe there’ll be a New Normal. For example, in the US after 9/11 people thought that life will never get back to normal but except for rigorous security screening at the airports, there hasn’t been much change in the behavior.
In Israel, amidst all the constant disturbance, people in Tel Aviv and Jerusalem are living normal lives. There’ll certainly be some specific changes post the pandemic such as more adoption of digital technologies, more focus on customer needs but I believe there won’t be an entirely new world with a drastic change in consumer behavior.
The need for personalization
What are some Attention hacking lessons for Insurers operating in ‘the New Normal’?
We are moving towards the personalization of products in general. Generally in Life Insurance, we insure people based on their date of birth or medical history. But what if we insure people based on their behavior? If we did that, would people change their more risky behavior to get a better rate? A non-smoker can be given a better rate as opposed to a smoker. If we get down to individuality, saying that this is your individual (your own) rate; it makes a difference.
There is a lot of data available and AI is needed to mine that data and derive analytics. Just by building a relationship with customers, we are not doing a great job with personalization. It’s important to apply a human touch to the communication which makes customers feel like you know them. Thus, retaining their attention.
Digital customer experience in Insurance
For the insurance industry, what steps can help in delivering the right digital customer experience in terms of UX and visual design?
A lot of organizations practice Design Thinking but Financial Services don’t. They are of the opinion that they know what is needed as they themselves are customers and they have data from the surveys. But that’s a wrong approach. Design Thinking is about empathy. It is important to get into the shoes of your clients to design better solutions.
To enhance digital customer experience, Insurers need a thorough understanding of users — who are the ultimate clients, their needs, what they expect from this experience, etc. After comprehending how they engage with technology and financial services, start venturing into the solution and test the solutions with actual users.
Innovations in the financial services industry
What technology-based innovations are being explored within the financial services industry? And, do you see AI playing a role in the short term?
AI has already affected Financial Services in a positive way and will make it better. In insurance, IoT has been very impactful and will continue to be. Some applications have already been applied in reality like sensors in cars to detect speed and ensure that you are under the speed limit. This helps in getting reduced premiums.
However, some basic processes are still done in the old school way of shuffling papers. Straight though-out processes have not yet happened. Now RPA is being applied to this but it is more like a band-aid. What is more important is how we can build processes through true automation with AI.
Speaking about more adoption of technologies, do you think there’ll be more investment in AI now?
Absolutely! We have already seen that investment in technologies like AI, cloud computing, quantum computing has been ramping up. Businesses will invest much more in AI than before. It might be for better decision making, underwriting, understanding the behavior of clients, etc. Also, from a marketing standpoint, financial services have never focused much before but will now invest in AI for this area too.
First is about what companies are doing incorrectly when it comes to innovation. Risk management is consulted only after developing the product. The product release is stalled until the legal compliances are adhered to. Instead, companies should involve the risk management at the beginning of the process (while defining the problem and solution). Involving risk management at every step of the innovation process will make it much easier to push out innovation.
The second was about vendor management. Many small vendors such as tech vendors, InsurTechs want to sell solutions to financial service companies but are often surprised by the tedious vendor management process. There’s a lot of documentation. Once the first process of selling is done, vendors should package the documentation in a way that when the next prospect asks for it, the due diligence package is ready to offer.
Alex shared interesting insights on how Design Thinking and Visual Design can create better digital customer experience. The design vertical at Mantra Labs too believes in the same and has designed UX for various applications for its customers. Here’s an article to understand the role of Customer Experience (CX) and User Experience (UX): Creating Amazing Digital Customer Experiences
AI is going to be essential for Insurers to gain that competitive edge in the post-pandemic world. Check out Hitee — an Insurance specific chatbot for driving customer engagement. For your specific requirements, please feel free to write to us at firstname.lastname@example.org.
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