If you’re in the insurance industry, you’ve probably heard a lot of buzz around insurtech. But what, exactly, is insurtech? It’s the digital transformation of the insurance industry, moving us away from processes and systems that waste our time and energy.
In return, this digital transformation is helping us increase efficiency, remove redundancies, provide a higher level of service for our customers, and drive more profit.
As someone who has personally led digital transformations at big carriers and startups alike, here are my thoughts on the topic and what Hourly is doing specifically to make life a whole lot easier.
So What is Digital Transformation Really?
Before we get too far into what’s happening with digital transformation in insurance, let’s quickly cover what digital transformation actually means.
Digital transformation is the process of integrating technology into a business or industry to make it more efficient and profitable. But it’s also bigger than that. When a business or industry undergoes a digital transformation, it doesn’t just create the opportunity for more efficient systems or higher profit—it fundamentally changes the way that business or industry functions.
What is Digital Transformation in Insurance?
Now let’s talk about the insurance industry. Historically, insurance has had a reputation as a necessary and important industry—but not necessarily an efficient one. For decades, much of the industry relied on paperwork and outdated systems that created more work than necessary, which had a negative impact on both profits and overall productivity.
In the past, an agent would need to go through a lot of steps to bind a policy for a small business. For example, if they were binding a $2,000 policy, they’d need to get the business owner to fill out the paperwork, send the paperwork to the carrier, gather additional paper information for underwriting, and more. Since the process was all paper reliant, the amount of time necessary between steps would make it extremely difficult for that $2,000 policy to be profitable.
But by making a simple switch from paper applications to a digital portal, information is more quickly and efficiently shared between the customer, the agent, and the carrier. This decreases the amount of time and effort it takes to submit, underwrite and bind policies—which increases their profitability and frees up the agent’s time to focus on connecting with more clients and driving more revenue.
That’s digital transformation in a nutshell.
Another example is the process of getting an insurance quote. Underwriting used to be a lengthy process and it usually took a while to get a quote back. Quotes could differ depending on what underwriter was looking at your paperwork.
With digitization, the whole game has changed. Insurance companies now use predictive modeling, artificial intelligence and other data sources to quickly analyze how likely it is a customer will have a loss. Programs crunch stats on what geographic region the customer is in, their industry behavior, past and current financial data, and more. The best part is, many quotes come back instantly, they’re consistent (i.e., you’re not getting different quotes from different underwriters), and they’re bindable right away.
The point is, the more things you can digitize, the more efficient things will be—and the more opportunity there is to drive profits. That’s the core of digital transformation in insurance and the rise of insurtech—and it has the potential to completely revolutionize the insurance industry.
How Hourly is Transforming the Insurtech Space
Now that you understand what digital transformation in the insurance industry looks like, let’s jump into how Hourly is currently transforming the insurtech space–specifically by creating opportunities for agents and businesses alike to increase their efficiency and profitability.
There are a variety of ways Hourly’s digital platform is doing this, including:
Allowing Businesses to Pay, Manage and Protect their Teams all on a Single Platform
Hourly combines workers’ comp, payroll, time tracking and HR into a single platform.
This integration is a huge benefit to business owners, giving them access to the data they need to manage their businesses better—like to-the-penny accurate workers’ comp premiums so that when they’re looking at labor costs and invoicing their customers, they can be sure they’re not ripping themselves off. They also save a bunch of time and decrease the chance of errors by not manually inputting timesheets.
Take one of our clients, Peninsula Hardwood Floors, for example–a small business in Silicon Valley founded by two brothers, Juan and Joel. Before Hourly, they were using paper timesheets and Excel to figure out how much they were spending on labor every week. How much time did that take? Too much. How many critical errors were made? Too many.
Now their employees manage their time and attendance on the Hourly app, which shows Juan and Joel their teams’ hours, jobs and locations in real-time. Now Juan and Joel can check how much they're spending on labor with one click. That makes it way easier for them to bill their current customers (accurately!) and bid on new projects.
What’s more–we’re adding in more features to make employees happier and safer, so they don’t get injured in the first place.
Giving Agents Unprecedented Access to Data
Since agents also have access to their clients’ data through the Hourly platform, they can see if clients are growing or reducing their teams–and by how much. Agents can then suggest the right changes to their clients’ policies or suggest other lines of insurance or class codes they need. By doing so, agents can assure their clients they never have to worry about whether they have the right coverage or not. Now that’s comforting.
Simplifying the Audit Process with Pay-As-You-Go Premiums
Workers’ comp policies are generally based on estimated premiums—but if anything in the business changes (for example, they hire more employees or reduce their workforce), those premiums also change, leading to either a large and unexpected bill or unnecessary overpayment at audit time.
But with Hourly, premiums are calculated using real-time data—and if the business changes, so do the premiums. That means, when it comes time for the insurance audit, there are no expensive surprises—and the audit is a more streamlined, efficient process for the agent, business owner, and carrier.
Offering Access to 500 Class Codes
Come to Hourly regardless of the type of business you or your client has, and we’ll get you a competitive quote.
Eliminating Paper
With Hourly, agents don’t have to submit physical paperwork. Any documentation they need to submit can be submitted as an attachment straight through the app.
Claims Reporting and Co-Branding for Your Agency…Coming Soon!
Next quarter we’re adding a feature that will allow injured workers to report claims with a single button–and another feature that will let agents add their branding to their client’s Hourly platform. That way, agents will be able to do their job even more easily and stay top of mind with their clients.
Use Insurtech to Improve Your Business
Whether you’re an insurance agent, an insurance agency, or a small business owner, you want to do everything you can to increase efficiency in your business and drive more profit. And the best way to do that? Digital transformation—and that includes choosing the right insurtech for your business.
1. Introducing Yourself
Your introductory email needs to pack a lot of information into a small package. Try something like this:
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Hello Jane,
My name is John Doe and I work for ABC Agency, where we provide business insurance policies to many of Dallas' rockstar small businesses.
Congratulations on your new business, Jane's Bakery. Are you wondering if you have all the insurance you need? Or if your policies will really cover you in a pinch?
At ABC Agency, we pride ourselves on providing robust, comprehensive coverage options to companies like yours with flexible, pay-as-you-go plans.
Are you available this week to talk more about how we can help? I can help you find the most affordable rates and the best policies out there.
I look forward to speaking with you soon.
Cheers,
John Doe
2. Presenting a Quote
Once you've met with your potential client, a quick reply with their quote will get the ball rolling.
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Hi Jane,
Thanks so much for meeting with me this morning. I loved touring Jane's Bakery–I can still smell those delicious chocolate chip cookies baking! You have a great location, and I'm sure you're going to do great on Front St.
After reviewing my notes, I've pulled together an insurance quote for you (attached). I recommend a business owner's policy. A BOP includes several insurance products in one: liability, property insurance, and business interruption insurance. It offers robust coverage at a competitive price.
I'll call you in a few days to see what you think about this insurance plan. In the meantime, if you have any questions, don't hesitate to email me or call me at [phone number].
Again, thank you for your time today. I look forward to working with you in the future.
Cheers,
John Doe
3. Thanks for Purchasing a Policy
Gratitude is important! It's never a bad idea to thank your clients for their business.
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Hi Jane,
Thank you for choosing a business owner's policy with ABC Agency. We know it's so important to get the right coverage for your business, and we are honoured you've placed your trust in us.
We're excited to work closely with you, and our no. 1 goal is to make sure you're business is always protected.
Do you have any questions? We are here to help. Reach out whenever something comes to mind.
Thank you again for choosing ABC Agency to insure Jane's Bakery.
Cheers,
John Doe
4. Welcome Email
A welcome email helps clients feel like you're there to help–and can softly pitch other insurance products you offer.
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Dear Jane,
Welcome to the ABC family! We are thrilled to have you as a new customer and can't wait to meet all of your insurance needs.
As an independent insurance agency, we work with multiple insurance providers to find the best coverage options for all our customers. If you need any other type of insurance–like [include additional offerings unique to your agency, like life insurance, health insurance, home insurance or anything else]–we can help you too.
Do you want to discuss any of these policies?
Cheers,
John Doe
5. Introducing a New Product
A happy client may want to expand their business with you.
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Hello Jane,
I hope all is well with you and Jane's Bakery. I stopped in yesterday for a blueberry muffin and coffee, and they were delicious. I loved the hint of cinnamon in the muffin! Was that your idea?
I wanted you to be the first to know we are now offering commercial vehicle insurance to our policyholders. Auto insurance for your catering vans is super important since your personal car insurance won't cover them.
We're offering this insurance coverage solely to our current business clients at the moment and have some very competitive rates.
Would you like me to work up a quote for you?
As always, thanks so much for being a part of the ABC family.
Cheers,
John Doe
6. Asking For Referrals
Once your relationship is established and comfortable, let your clients help you grow.
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Hi Jane,
You've been a valuable member of the ABC family for two years now, and we so appreciate your business–not to mention the muffins you supply for our monthly meetings!
Because you are a valued policyholder, I wanted to ask a quick favour. I know you are active in the local Chamber of Commerce, and I'm hoping you might know some colleagues who would benefit from working with our insurance company.
Referrals are one of the most effective ways to connect with our community since people really trust their friends, family and colleagues. Is there anyone you'd recommend I speak with?
Remember that in addition to business insurance products, we offer everything from life insurance policies to pet insurance.
As a thank you for your help, we will send you an Amazon gift card of $100 when your referrals buy insurance from us.
Thanks so much for your help!
Cheers,
John Doe
7. Policy Renewal
If your client needs to renew their policy with you, send an email like this:
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Hi Jane,
I hope you're doing well! What a year it's been—from being listed as one of the top 5 bakeries in Dallas to being an official vendor for the city—you have so much to be proud of.
Just a heads up that your business owner's policy is up for renewal soon and will expire on June 15, 2023.
If you're still happy with the coverage, we can easily renew it for you.
Do you have some time to chat this week?
Looking forward to serving you again!
Cheers,
John Doe