As the B2B insurance market faces myriad challenges with financial regulations and technological advancements, the global pandemic has dealt the final blow, from which most insurance companies are still recovering. From constantly changing customer expectations to fluctuating market demands, B2B insurance agents have had a lot to deal with, and strategic, marketable solutions seem to be the only way forward.
In this article, we will discuss the top five roadblocks faced by B2B insurance brokers and how they can overcome these:
The entire financial market is transitioning through a phase of digital transformation. This transition has become imperative for corporate insurance companies, as legacy systems can no longer meet the market's changing demands or efficiently deliver data insights that can benefit B2B insurers.
In such circumstances, B2B agents with traditional legacy systems or conventional insurance models are falling behind. Their lack of knowledge or hands-on experience in CRM and other insurance software can cost them potential leads. To address the customer pain points and improve the way insurers engage with B2B clients, insurers must adopt a digitized approach.
According to a survey by Accenture, 60% of insurers have already started scaling their digital approach for improved customer relationship management. The only solution to the drawbacks of the legacy systems is a remodeling of the B2B insurance structure that involves high-end CRMs and data-driven technologies to draw insights into customer trends and improve business performance.
With B2B clients constantly looking for insurers who give coverage that benefits their enterprise and has plenty of added advantages, digitization is the only way ahead for B2B insurance companies. Compared to B2C agents who cater to clients on a consumer level, B2B insurance agents deal with stakeholders and primary decision-makers of companies. B2B clients know it might take a little longer to find a good insurance deal, but they would consider all the factors before choosing an insurance policy.
With modern CRMs providing efficient data management and advanced no-code tools, B2B insurance brokers can scale high with confidence and generate high ROI for insurance companies.
2-Effective lead generation
Most B2B insurance brokers are faced with the challenge of generating potential leads, and this is often because they lack the prospects that would benefit a B2B client. A mere strategic sales pitch does not do the job anymore, as everything is available online, and clients do their research on insurance companies before narrowing down their options. B2B insurers mostly fall behind in presenting incontestable policy covers which would meet the client's needs and foster their business. Data protection is also a significant concern among B2B clients. In addition to these issues, the cut-throat competition in the insurance industry makes lead generation a substantial roadblock for B2B insurance agents.
Let's look at how you can turn around these issues and prepare for success as a B2B insurance agent.
Although the obstacles can be overwhelming for B2B insurance brokers, effective solutions can be harnessed from these growing challenges by B2B insurers.
First, all insurers must be GDPR compliant to assure their customers that they will protect their data at all costs. B2B insurance agents deal with multiple companies' data, and their priority is safely keeping customers' data at all costs.
Second, insurers can maintain a business blog with refined content to be more transparent about their work and the policies they cover. This gives B2B insurance brokers the scope to have a transparent approach and acquire new leads. You must ensure your blog content has the potency and marketing elements to reach your target audience and capture their interest.
3-Having a well-defined sales process
An insurer may have all the technical and marketing tools at his disposal. Yet, he may fall behind in this increasingly competitive industry due to a lack of a definite sales process. A data management system or automated customer-facing process does not guarantee lead generation or conversion- a concrete sales process does.
A recent Vantage Point Performance and the Sales Management Association survey shows that pipeline management is directly proportional to solid revenue growth. According to the study, 18% of companies with a definite sales process witnessed growth in their revenues compared to the ones without efficient pipeline management. The study comprised 62 B2B companies, of which 39% witnessed remarkable growth in income above $1 billion, while 39% saw revenue growth above $250 million.
This shows how B2B insurers must prioritize the sales processes to improve their performance and increase ROI.
To bring in high ROI, B2B insurers can implement the following strategies:
Process analysis: B2B insurers in a company must be divided into two groups, each with a definite sales approach. After a stipulated period, an analysis must be done of the selling strategies and leads brought in by the two groups to derive better processes and adapt those strategies.
Activity analysis: While the insurers take their prospective clients through the buyer's journey, they cover certain stages which are imperative to turning a prospective client into a potential long-term buyer. B2BiInsurers must perform an in-depth analysis of which strategy in their sales process brings in more clients compared to the processes that aren't improvised and tend to be bottlenecks. This helps you understand the methods beneficial to the sales process and what to improve upon.
B2B insurers can adopt a B2B Sales Funnel Strategy that helps them have complete visibility of their leads and metrics to improve their performance and contribute to revenue growth efficiently.
Implementing cybersecurity has become a priority for data insurers, as B2B insurance brokers are increasingly becoming the target of hackers and cyber evils. B2B clients deal with enterprise data worth billions of dollars-compromising client data under any circumstance is not an option for B2B insurers. Insurance companies that fail to adopt an encrypted data security model are falling behind in the competitive landscape.
Insurers have increasingly become lucrative targets for cyber attackers as they hold large amounts of client data such as customers' Social Security numbers, personal identification numbers, clients' bank accounts or digital wallet details, addresses, and so on. Such sensitive data has to be protected at all costs from becoming liable for identity theft, cyber fraud, or illegal financial transactions.
B2B insurance companies need to adopt zero trust models, AI, and blockchain technologies to strengthen their database and acknowledge existing gaps in the current database and system processes. B2B insurers must stay careful and robust regarding client data, performing risk assessments periodically. With a comprehensive data protection strategy, B2B insurance companies can protect their client's interests during a cyber hack and ensure business continuity.
5-Insurance marketing challenges
The development of insuretchs, digital advancement, and CRM software may have smoothened the pipeline management process for insurers. However, the challenges of insurance marketing still loom in the dark and are yet to be channelized effectively.
On top of these, the changing client demands in the B2B insurance industry and the low-interest rates have made it quite a task for B2B insurance brokers to stay ahead of the curve and bring in high ROI. B2B insurance has to keep up with the trends and remains compliant to benefit from the industry and land potential leads. They have to understand the pulse of the industry and what the client is looking for instead of adopting a generalized sales strategy.
Foremost, B2B insurance brokers need to understand their clients. With hundreds of insurance companies coming up in the market, it is vital to strengthen your marketing strategies by studying the client trends and finding sales strategies that are out of the box.
Second, B2B insurers need to get technically sound and adopt an online, seamless, customer-first approach to gain a competitive advantage and client trust. With Google meet and Zoom calls becoming the new normal, B2B insurance brokers should always have their A-game present. Introducing clients to CRM processes and data protection systems to have a transparent approach.
Lastly, B2B insurance brokers must be compliant and updated with all kinds of changes in the insurance industry. The only silver lining between a B2B client and a B2B insurance broker is that they know more than the client. The agent's job is to leverage their knowledge in the field and use it to their advantage to acquire leads that turn into long-term customers.
To conclude, we must not forget the tangible nature of insurance following the ever-changing nature of the industry. With most insurance companies still developing on the technological front and strengthening their marketing strategies, B2B insurers need to walk against the increasing challenges and competition and prepare for success in the next few decades.
We hope the resolutions provided in this blog will help you strive through the hurdles and make the most of the insurance industry, which is here for decades to come and contains enormous potential on the business front.