When it comes to the present, we see that we have quite many types of consumers that are arising and they have been classified as follows: –
- Nomads
- Quality seekers
- Hunters.
The above classification has been made on the basis of how consumers demand from insurance companies. But since the pandemic hit the world and companies fell into loss, insurance companies suffered the most. Personally, I have known so many insurance companies and banks that give out life insurance policies that have failed or have been completely ruined in the last two years. Until and unless there arises a strict fundamental change in the insurance models, which is to break the traditional ones and accept the change, there won’t be any future left for those who stick to the past.
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Distribution of Insurance Models In Future: A Definitive Guide
Where Do We Lag?
When it comes to insurance, we have lagged behind so much that we still follow decades-old traditions and there has been no change in any way since establishment. Fortunately, I have penned down a list that companies need to adopt. The list is as follows: –
Transformation in distribution models.
The old ones are too lame. Simply stating that “Buy your insurance so that you can be protected financially in the future” is something that is utterly useless. How about a question for you… “why your company?”
Modernize Your Products and Services
This doesn’t mean that you adopt Tesla cars and charge through people’s houses with a Men in Black look and high tech at your service. It just means that you should blend your services and products according to the need right now. This is not a piece of financial advice, but I have seen a company offer insurance to Instagram models with huge social media following for their Instagram account. This would secure their services and plus your company would get free advertising.
Tailor Your Offerings
A general insurance policy that fits everyone won’t sell in the future. We even have custom-made medicines designed for patients and you can have custom-designed doses and everything. Why not an insurance policy? If we don’t adopt having custom-made insurance policies for everyone, we can’t be sure to survive in the near future.
You need to accept change. This would be the only thing that would make your company shift from being long-term insurers to everyday insurers.
Things That We Should Adopt For Distribution of Insurance Models Now
Yes, NOW. Change is gradual and it doesn’t happen in a day. You need to make sure that your company follows the points mentioned below now. Because it’s always now or never. Those 4 things are as follows:-
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Become A Virtual Guide
These days, statistics and analytics look too dull on graph papers and files. For life insurance companies, having a virtual confrontation that would explain all the pros and cons will offer more customized services.
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We All Are One
And that’s what customers expect from insurance companies too. A simple injury if noted and reported and everything from medical bills to medicines are given on time, customers would want more from you. Be connected to your clients.
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Know Your Ecosystem
When it comes to distribution models, we see that companies are too shy or not so sure to venture out. The reason behind this is that insurance deals are basically subjected to risks and they believe that customers need to have one-on-one interactions to understand. But this is not true. Adopting alternative distribution models would result in a significant rise in the amount of reach for the companies. Collaborating with distribution companies via online platforms and social media advertising is a must for growth.
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The P2P Model and Its Significance
If you don’t understand the importance of knowing your customers personally then you don’t know anything. Try to reduce distribution and claim costs by adopting and incorporating the P2P Model.
Final Words
All there is in the future for insurance companies is for those who adopt changes. Having a good grasp on the distribution of your insurance policies and adopting modern trends is what will make you survive in the future. Comment your thoughts on this below.