Only 38% of insurance brokerages are using their management systems to produce data analytics solutions for their employees, clients and stakeholders, finds Applied System’s ‘Digital Agency Annual Report.’
That’s concerning, considering 99% of brokerages have a management system, which suggests a large majority (62%) of agencies are underusing their systems’ abilities to produce useful data and insights, the survey of 603 independent agencies in the U.S. and Canada found.
“Data analytics solutions act as an agency’s data scientist and help visualize raw data into actionable insights using interactive dashboards. They provide real-time data analysis on employee productivity, client relationships, market share and revenue, and carrier relationships empowering you to easily track and analyze valuable metrics that matter most to your agency,” the report stated.
However, brokerages are doing better at producing data analytics than they have in the past. There was a 27% increase year-over-year in the adoption of data analytics solutions, jumping to 38% in 2022 from 30% in 2021, the survey said.
Overall, Applied’s survey found just over half (51%) of agencies have a digital strategy. Of those, 65% developed strategies that only focused on one to two years; 32% of agencies created strategies looking out three-to-five years; and 3% of agencies on six-to-10 years.
However, agencies without a strategy may miss out on improved customer retention and acquisition, increased employee productivity and satisfaction, and time and money savings, Applied found.
“In a system that provides an online experience like popular apps and online services, your employees can more easily access account and policy details, complete a quote, process a claim, and more. Fewer clicks and streamlined workflows mean more productivity,” the report read.
Automation, including back-office accounting and front-office sales, may also save time and reduce…
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