Agent-Carrier Connectivity in Personal Lines Facing InsurTech Pressure

New SMA Research Report Highlights Insurer Plans, Investments, and Challenges

Boston, MA (Nov. 30, 2016) – Strategy Meets Action (SMA), a leading insurance strategic advisory firm, has just released a new research report: Agent-Carrier Connectivity: Personal Lines Insurers. The report covers the business drivers, current state, future plans and projects, challenges, and investments that personal lines insurers are making regarding agent-carrier connectivity.

“Traditional personal lines product distribution is under full-blown assault by InsurTech,” said Karen Pauli, SMA Principal and author of the report. “SMA research shows that 30% of the approximately 600 InsurTech startups being tracked are focused on disrupting and displacing conventional distribution channels – the greatest point of focus across all InsurTech categories. Insurers must reframe their commitment and, more importantly, timing for improved agency connectivity to assure the viability of agents and brokers in personal lines.”

Key themes of the research include:

  • The majority of insurers understand the strategic value of agent connectivity technology but struggle to maintain focus.
  • 85% of survey responders believe that agent connectivity technology will be a game changer by 2020, but that time frame will compress as InsurTech technology changes the market place.
  • Next to conflicting needs, the top operational problem is old technology/legacy constraints. Insurers must complete modernization to assure robust, connected experiences for agents and customers.

Investing in connectivity technology for differentiation is a priority for only a little over half of the insurer respondents. The report offers an SMA Call to Action to help insurers shift to an innovation strategy to meet the challenges from the emerging competition.

Factors that inhibit companies from investing in agent-carrier connectivity

Factors that inhibit companies from investing in agent-carrier connectivity

Insurers, agencies, solution providers, and media that are interested in learning more should contact Karen Pauli at kpauli@strategymeetsaction.com or 774.462.7820.

About SMA

Exclusively serving the insurance industry, Strategy Meets Action (SMA) is an advisory services firm offering retainers, research, consulting, events, and innovation offerings to both insurance companies and solution providers. Learn more about SMA at www.strategymeetsaction.com or visit the SMA Blog.

SOURCE: Strategy Meets Action (SMA blog)