How insurance companies can modernizetheir distribution strategy using the multichannel approach
Cogitate Technology Solutions looks at the benefits that come with adopting multichannel distribution using insurance software solutions.
Expanding coverage through multichannel distribution using modern insurance software solution
As technology has become more and more deeply ingrained in people’s lives, it has influenced significant change in the behavior of the insurance customers. Traditional channels of insurance distribution are proving to be incompetent to address this changing behavior. The modern-day consumers prefer doing their own research, comparing the insurance products available and then making an informed decision. This has resulted in a shift in the way the insurance industry operates, with insurance companies relying more on multichannel distribution model.
Driven by technology, multichannel distribution is a powerful way to broaden customer segments and penetrate new markets, while also improving customer loyalty and increasing revenues. As such, multichannel distribution can be beneficial not just too insurance companies but also to their customers as well as the channel partners.
For Insurance Providers, the benefits stem from efficiency and improved customer relationships such as:
- Increased convenience and improved experience reduce customer churn rates
- amplified reach and faster market penetration
- Increased cross-selling opportunities
- Reduction in average cost of distribution services
At the same time, For Customers, the benefits come from the flexibility and the ease of access which include:
- More choices in the way they can interact with the insurance provider
- Freedom to choose a channel that is most convenient for them
- Ability to track status of their policies, claims, endorsements, with ease
Additionally, Channel Partners benefit from the ability to access all the information they need such as
- Quick access to information allows for a better selling process
- Ability to check commission and payment status anytime, anywhere
- Ease in tracking status of cases
- Ability to access information related to insurance products and services, at their convenience
To effectively adopt multichannel distribution, insurance companies must understand the gap in their existing distribution models. They also need to understand the needs of their customers and the challenges of their partners. They must then try to address these, while being able to forecast the effects on the business as a result of change in approach. It is understandably a critical process, and with the right partners and the right insurance software solutions, insurance companies can evolve and redefine their distribution.
Cogitate Technology Solutions has transformed some of the biggest insurance software companies in USA by creating a digital insurance ecosystem that seamlessly integrates their processes, operations, customers, channel partners, documentation and other business requirements. This has enabled the companies to adopt a multichannel distribution model that is efficient and aligned with their needs. Our advanced insurance software solutions have helped customers to modernize their distribution using digital technologies such as web and mobile applications. This has helped them to improve their customer service and facilitate their channel partners with the necessary information to better service the customers. To know more about how you can leverage insurance solutions to transform your insurance distribution system, visit www.cogitate.us