The insurance industry is undergoing an essential transformation. Changes in demands of clients, cutting-edge technology, increased data, the impact of natural calamities, and evolving regulations are just a few of the factors combining to shake the industry. Along with these changes, insurance aggregators have become an inevitable development. An aggregator has added value to the insurance industry by being feature-driven and integrating it into the insurers’ value chain. Aggregators can also mean marketing optimization for the carriers.
Who are Insurance Aggregators?
In simple words, an insurance aggregator is an alliance that comprises diverse insurance agencies and offers support and benefits to their members. These groups are also known as insurance clusters or agency networks. Aggregators are mavens. They are information specialists-streamlines data from various sources and make it accessible on a single platform.
Each insurance cluster works as a focal point for the dissemination of information. It is an assortment of aggregate data related to the industry, which helps attract new prospects by being a one-stop shop for comparing insurance products from across the market.
Insurance Aggregators: How they work and why they matter
With technology taking the insurance industry by a storm, aggregators function as glue. It connects agents like you and consumers to a diverse platform by centralizing information in one stop. Aggregators serve as a comparison-shopping site. Let’s take an example from Skyscanner, recommended as one of the best travel aggregators.
They let you compare prices and work to give you the lowest price on a flight. What is even more enticing about their feature is being able to look at trips over an entire month to determine which date or day is the cheapest. Also, providing tools to be able to search for cheap flights from your location to anywhere.
Aggregators are like Walmart; you find everything under one roof and are considered as an essential distribution channel. It opens up opportunities for clients while creating value by offering quality services and transparency.
Likewise, as an insurance agent, you can display your products and services to a broader market. New or existing prospects can find detailed information about insurance policies, claims, premiums, rates, and company comparisons on the aggregators’ site.
Independent Agents: Why should you use Aggregators?
A Swiss Re Report states, “More than half of consumers say they are likely to use comparison websites to help make purchase decisions about insurance in the future.” Aggregators are a treasure trove for insurance agents. It makes your work more manageable, and technology is definitely affecting consumer behavior, from preliminary insurance information search to other pre-sales activities. Also, mobile technology is changing the timing of interactions between insurers and clients.
And allowing the retrieval and dissemination of information from almost anywhere at any time.
Listed below are some of the benefits of using an insurance aggregator:
As an insurance agent, when you start using an insurance aggregator the most exciting pros, you could ask for his accessibility to multiple carriers and products. It means you can offer more choices in helping your clients find suitable coverage at the best rate.
Not only do you have access to more carriers, but access to markets as well. These markets will allow you to actively contract with carriers to provide your clients with the best insurance coverage. It serves as an advantage for the agent as it helps them to analyze consumer and market behavior.
As you progress from a smaller company to a larger one, you will have the opportunity to attend networking events. Your network can play a crucial role in your professional success. Building a strong and expansive network will give you insights into market trends, consumer behavior, and insider information about your competitors.
One of the significant roles of an insurance aggregator is to gather information from many sources as possible. When you meet other agents and carrier representatives, you will get the opportunity to share what is working for you and what is not. It will help you brainstorm new ideas and give key ideas to write new business.
3. Driven by Technology
With information available only in a touching way, technology has made purchasing goods and services more accessible. For example, “in the U.S., a 2012 McKinsey report found that 73% of individuals shopping for auto insurance used the internet for information gathering.”
Consumers spend most of their time on the internet and gather price and product information. It has been a trusted source of advice. What’s more, the availability of data, from the agent’s website to consumers’ blogs has helped clients assess the risks, insurance needs, and the buying process.
Technology has been disrupting every other industry, and it is here to stay. From buyers to sellers, everyone relies on advanced technologies. To keep your game up in the industry, you must be updated and utilize every possible digital platform.
4. Higher Commission
One of the things you will enjoy the most is higher commissions. The commission splits of an agency depending on the agreement with their aggregator. Nevertheless, an independent agent is offered better commissions compared to captive agents.
You can maximize your profits with the flexibility and competitive options provided by the agency. You can also benefit from the consumer power of joining a larger group and make sure that you’re getting more bang for your buck!
5. Agency Management Software
When you are a part of an agency, one of the things you will have access to is their management software—time to get rid of those paper files and traditional spreadsheets to manage your client information.
When you have access to that sweet, sophisticated technology, don’t let anything hold you back. As mentioned above, everything under a roof manages your clientele details, streamlining administration and commissions in one place.
Make your work effective and efficient using the software. Keeping all files in the same location will be easy and give you quick access.
What does the future look like?
Like the saying, “The best is yet to come, ” aggregators’ future looks hopeful. Insurance aggregators continue to grow at a rapid pace through opportunities in new markets and prospects and offer new products in the existing markets.
When you are a part of a more extensive network, it will help you evolve as markets and consumer behavior progress. Clients expect the speed and elegance of digital retail and have become increasingly tech-savvy. They can compare the best deals, and rates with competition in an instant. With this in mind, it will help prepare you to write new business deals.
A successful aggregator has the potential to shape your future. Successful agents will be those who will develop a client-centric and digital mindset, capable of responding to changes in the market and delivering insurance solutions tailored to their needs. Developing personalized products and services will also attract more consumers to you, which means more business, commissions, and efficiency!