A Page from Amazon, 1-Click HomeOwners Insurance Policy Quotes, Because Two Clicks is Too Many...
There is no doubt that the demand for digital purchasing has increased due to the COVID-19 pandemic. In a past blog post, we talked about how COVID-19 spurred technological and digital innovation and change within the mortgage industry among lenders. Similarly, there have been a plethora of opportunities for home insurance companies within the industry to respond to this digital accelerant. Some more boldly and with higher urgency than others. What exactly are these advances within the industry that COVID-19 has urged? What are customers demanding and how can insurance companies respond to these demands? What are the benefits to mortgage lenders?
Benefits for consumers.
The allure of digital options largely lies in convenience, safety, and speed. Innovation within home insurance companies has taken the form of access to fast (even instant) online quotes, in which potential customers can better understand their options in a short amount of time, with less or no work at all. Digital technology within the industry can also help properly evaluate risk for potential customers using improved data analytics. This has helped improve accurate and competitive pricing for customers. Additionally, when it comes to claims, insurance companies are recognizing the need to streamline processes in order to provide a seamless experience and decrease friction between third-party operations. In order to meet this need, many companies are investing in digitizing this process and consolidating across the board.
Digital experience matters.
Furthermore, the demand for types of products has shifted. Insurers have delved into the realm of innovation on pandemic and epidemic-associated products. The insurance industry, at its core, works to ensure the security and safety of its customers. During these times, many have been faced with increased financial anxiety. According to KPMG, respondents in a customer survey prefer simplicity and fulfillment within their financial policies. A top concern was for insurance providers to be able to process and deliver on claims online. Moreover, the ability for an insurance provider to provide an online experience from beginning to the very end was a quality that customers looked for when choosing a provider.
COVID-19 has not only increased demands in certain directions, but it has also underlined shortcomings within the industry as a whole. One of these shortcomings is a lack of personalization within the large scale of the insurance industry. With insurance agents realizing the need to provide high-quality value for their customers, the desire for a personalized insurance experience has occurred in these times of increased stress for the everyday person.
Old methods of selling financial services don't work.
“Door to door sales of vacuum cleaners no longer works. It's all self-service on Amazon. There is no difference in financial service products such as home insurance”, says Bulfer, StreamLoan CEO / co-founder. One example of how StreamLoan is leading innovation in the space is with the launch of a “1-click” homeowners policy quote, in a ‘marketplace’ setting, automating the shopping process on behalf of the borrower. It's unacceptable to ask a borrower to run around during a home purchase or refinance and try to find the best insurance fit, manually filling or dictating all their personal information on the phone to an agent, on someone else’s schedule during business hours. StreamLoan offers “1-click” self-service for the borrower to get the best deal, by typing nothing...a single click. That’s the way it should be, and we proved it's possible in 2020.
Online methods for communication and interaction have helped make this possible on a large scale. Digital tools have led insurance companies to innovate and conduct ongoing operations during these times. Some insurance agents and advisors have learned to conduct meetings with customers online through quick turnaround chat messaging and also secure video calls. This points to increased personalized advice for customers.
Consumer expectations have shifted.
The COVID-19 pandemic has worked as a catalyst that has shifted customer expectations, highlighted needs, and accelerated the insurance industry towards digitization. Digitization and the increase in technological tools for a seamless and secure customer experience have been highlighted as effective avenues for the insurance industry to serve their audience more efficiently and competitively.
The lender wins with speed and conversions.
Last but not least, mortgage lenders have countless headaches and roadblocks to deal with for each mortgage from lead to close. Collecting financial docs, running credit, providing proof of insurance, title, appraisal, the list is endless. Making the insurance seamless and smooth only helps close more loans, more efficiently, with a better customer satisfaction.