Protecting Yourself in the Evolving Insurance Industry

The Always Improving Insurtech is Making Life Easier

The insurance industry is undergoing significant changes, with emerging technologies to improve efficiency, accuracy, and customer experience. The COVID-19 pandemic accelerated the adoption of digital technologies, forcing many agencies and brokerages to find new ways of delivering services and communicating with clients. While this presents exciting opportunities, agents and brokers need to be aware of the potential risks and liabilities that come with technological changes.

One key way to protect yourself is by being proactive with your clients, informing them about risks and staying informed about the latest trends. In this blog post, we’ll discuss why it’s essential for agents and brokerages to be proactive and how doing so can keep them out of E&O (Errors & Omissions) lawsuits.

Insurtech Has Become a Competitive Industry

The past few years have seen a surge in investments in insurtech startups, with major carriers placing big bets on digital solutions that improve insurance workflow. While the adoption of technology has been slower among individual agencies, consumers have become more comfortable with digital channels and expect greater connectivity and efficiency from their service providers. Thus, agents who fail to keep up with technological advancements risk losing business and damaging their reputation. However, it’s important to note that new technologies may also introduce new risks and liabilities, such as cybersecurity breaches or data privacy violations. To protect themselves and their clients, agents need to stay informed about the latest technologies and associated risks.

The Need for Proactivity in Client Communication

Insurance agents have a legal and ethical obligation to act in their clients’ best interests, including providing accurate and timely information about risks and coverage options. In the digital age, this means being proactive and engaging with clients through multiple channels, such as email, social media, or online portals. By making sure clients are aware of potential risks (e.g., underinsurance, cybersecurity threats, claims disputes), agents can help prevent misunderstandings and E&O claims. Proactivity also means anticipating clients’ needs and preferences, offering customized solutions, and providing ongoing support and education.

The Benefits of Proactivity for Business Growth

While proactivity may require additional effort and resources upfront, it can pay off in the long run by improving client satisfaction, loyalty, and retention. A proactive approach can also help agents differentiate themselves from competitors and attract new business by demonstrating their expertise, value, and trustworthiness. By building strong relationships with clients and addressing their needs and concerns before they become issues, agents can enhance their reputation and brand recognition. Moreover, proactivity can lead to better risk management and reduced liabilities, thus saving time, money, and stress in the future.

Best Practices for Being Proactive with Clients

To be effective in client communication and risk management, agents should adopt best practices that align with their business objectives and values. Some best practices include:

  • Creating a culture of proactivity within the organization, starting with leadership and staff training
  • Developing a comprehensive communication plan that considers clients’ preferences and feedback
  • Investing in secure and reliable technologies, such as encryption, firewalls, and two-factor authentication
  • Reviewing and updating policies and procedures regularly to adhere to regulatory changes and industry standards
  • Collaborating with other professionals, such as lawyers, accountants, or risk managers, to address complex issues or specialized needs

In the fast-paced and dynamic insurance industry, agents need to stay ahead of the curve and proactively manage risks and opportunities. By informing clients about risks and benefits, being accessible and responsive, and leveraging technology and best practices, agents can protect themselves from costly E&O claims and build a successful and sustainable business. As the insurance technology revolution continues to shape the industry, those who adapt and innovate will thrive, while those who hesitate or resist may struggle to survive.

The time is now – be proactive, be informed, and be resilient.

About Patra

Patra is a leading provider of technology-enabled insurance outsourcing. Patra powers insurance processes by optimizing the application of people and technology, supporting insurance organizations as they sell, deliver, and manage policies and customers through our PatraOne platform. Patra’s global team of over 6,000 process executives in geopolitically stable and democratic countries that protect data allows agencies, MGAs, wholesalers, and carriers to capture the Patra Advantage – profitable growth and organizational value.

William Wagner, VP of Marketing

About The Author ...

William Wagner
Vice President, Marketing

William Wagner is responsible for Patra's Global Marketing and Inside Sales organization. With over twenty years of marketing and product management, William ensures that Patra's services, technology innovation, and brand are closely aligned with Patra's prospects and customers' needs to bring forth transformative change in how insurance solution are delivered, supported and managed.