The insurance industry continues to evolve incessantly to address the needs of businesses and society by providing security and resilience in keeping with the changing market trends. An enabler of innovation, it’s imperative for the B2B insurance market to keep up with the changing times to sustain growth and have a competitive edge.
B2B insurance brokers play a significant role in driving industry revenue by acquiring potential clients and easing the customer journey. They’re at the core of the distribution channels in the B2B insurance industry. For example, did you know that a European survey estimated that insurance agents had accrued insurance policies worth around $800 billion in 2017, and insurance premiums gained a value of around $875 billion in 2020?
Therefore, to stay relevant and bring value to the B2B insurance industry, B2B insurance brokers must adopt a dynamic and agile approach and prepare for the upcoming decades.
In this article, we’ll understand how brokers can adopt new stances and root for success in the next decade by understanding the challenges they’re facing in the current market and how they can prepare accordingly to stay ahead of the curve in the future.
Challenges faced by insurance brokers
From technological advancements to changing customer expectations, the model of B2B insurance has taken a paradigm shift in the past decade, making it more important for brokers to pull up their sleeves and implement efficiency and professional agility at the center of their execution.
Let’s look into some of the challenges that B2B insurance brokers face:
1-Changing customer expectations
We all know that the tragedy of the global pandemic has magnanimously impacted the global economy. The ripple effect of that didn’t leave the insurance industry, which is still in a recovery phase. Customer trends changed, too, with the blow of the pandemic.
Customers are looking for enhanced personalized experiences and policies that cater to their requirements. While B2C brokers can cater to that on an individual level with more flexibility, the same is not valid for B2B insurance brokers. They deal with elite decision-makers in an enterprise who prioritize speed, value, and convenience.
B2B brokers need to build trust and help their clients make an informed decision on the policy that benefits the company. In the era of instant gratification, policy comparison sites, and ratings, B2B insurance brokers must stay on top of their game to achieve a breakthrough amidst the changing customer expectations.
2-Streamlining workflow efficiently
The B2B insurance market constantly evolves with newer technologies, data processing systems, and new products and policies. Keeping up with the changes to deliver customer satisfaction and drive revenue growth can be cumbersome unless one makes the extra effort to stay ahead of the curve as a B2B insurance broker.
Dealing with decision makers of a company and generating worthy leads is no child’s play; hence most brokers who are not compliant or updated with the new policies and regulations to facilitate their workflow fall out in this increasingly competitive market.
It’s now more important than ever for B2B insurance agents to evaluate their workflow to resist operational gaps and faulty processes disrupting their growth in the insurance industry.
3-The shift in the technological front
B2B customers look for advanced insurers on the technological front and aim to deliver a digitized, seamless, fast, and fast customer experience. They understand that finding the right policy that benefits the company might take a while and ensure they choose a policy with the right amount of coverage.
More often than not, B2B clients have a team to research, compare and review to suggest the best insurer for the company. B2B insurance brokers preparing for success in the next decade and set to unlock policies worth billions must have a sound knowledge of technology. They must adopt strategies that digitize the customer’s journey effectively.
4-Cybersecurity
The downside of digitization is the onslaught of cyber threats. As surprising as it might sound, in 2018, it was estimated that cyber-attacks could cost the global economy about $600 billion annually, with the financial sector being the hardest hit! Isn’t that astounding?
Sadly, it’s the reality now! With cyber threats emerging like wildfire, B2B insurers need secure, encrypted data management systems to protect client data at all costs. B2B insurers need to cover costs associated with cybersecurity to retain clients in the long term and scale growth.
Providing this kind of coverage at a low-interest rate can make it a challenge for insurers to meet the cost of the capital and increase revenue; hence strategic policies need to be provided by B2B brokers to drive home the fact that they are looking out for the best interest of the customers.
Now that we have briefly understood the challenges faced by B2B brokers in the current market, it will be easier to understand the business moves they should make to succeed in the upcoming decades.
How to succeed in the B2B insurance industry in the next decade?
Brokers are constantly thriving and evolving with the challenges of today to meet the challenges of tomorrow with optimism and endeavor. We’ll provide you with the solutions to grow amidst the challenges and help you comprehend how to set yourself up for success in the following decades:
1-Godspeed
Staying updated with the latest policies and regulations will always give you an edge against your peers and the leverage to deal with your clients confidently!
The only thing that distinguishes a B2B client from a B2B insurance broker is that you carry more knowledge in your forte than them. Hence, staying updated and providing your clients with the policies that benefit them the most will take you a long way.
2-Digitized solutions
With clients demanding quicker responses and excellent customer service, insurance brokers should be able to provide digitized solutions that offer sound insurance advice and enable the client to make an informed decision quickly.
Brokers must remember that clients are no longer novices in any matter. Every client looking for an insurance does thorough research before opting for a policy. Hence, by facilitating this process through digital quotes or documents that customers can sign and confirm, the entire process can be seamless and faster.
Insurers with CRM software and automated chatbots in place to respond to customer queries thus have a higher chance of generating revenues and driving value over time. The brighter side of having a well-informed client is that you can deliver your expertise in a better way by providing detailed information to the customer and helping him make improved decisions.
3-Thinking outside the box
Growing in the B2B insurance industry amidst the problems and changing nature of the industry can be quite a journey! Here’s a secret to succeeding in the B2B insurance industry this decade and the next: Think Outside the Box!
B2B clients know what to expect from brokers before each meeting; they understand that they have to put in much thought from a business standpoint to choose a policy! However, compared to B2C markets, B2B markets are way more targeted, where you deal with professionals who make the decisions.
Hence, providing complimentary value-added services in addition to the regular brokerage, such as risk management or claims processing, will be the surest ticket to success! In a customer-centric business model, the more efforts you make to look after the client's best interest, the better your chances of ruling out your competitors.
4-Newer skills and digital literacy
Foreseeing the challenges or opportunities the B2B insurance industry will sustain in the next decade is hard. However, with newer skills and sound digital literacy, B2B insurance brokers will always be a step ahead to weather the challenges and thrive in the opportunities.
Hence, insurers should conduct upskilling sessions for insurance brokers and give them a hands-on experience in Insurtech to offer only the best to clients and draw more significant revenue in the upcoming decades.
With the B2B Insurance market set to fly high in the coming years, brokers can make the best of artificial intelligence, CRMs, and big data to deliver unparalleled customer service and enable their clients to make improved decisions.
Conclusion
There’s no understating that B2B insurance brokers are facing newer challenges every day, being in a volatile market. However, it’s also true that they will continue to be the central force for revenue generation for the insurance industry for years to come.
Insurance brokers can expect a brighter future by staying at the top of technological innovations and rooting for more robust marketing strategies. Their success in the upcoming decades is directly proportional to their capacity to adapt to the ever-changing landscape and keep their heads high in more challenging times.
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