Insurance Aggregators – The Best Way Forward for Insurance Agents (2023)

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• What is an Insurance Aggregator?
• Why Choose an Insurance Aggregator?
• Is Becoming an Insurance Aggregator the Best Way Forward?
• Agents and Aggregators in the Future

The consolidation of agenciesisincreasingly growing. According toInsurance Journal,there are15 insurance distributorsthatarebigger thanalmost allofthe insurance companiesout there.Out of a total of 900 insurance companies, their scale of operation is equivalent to being larger than roughly 860 of those companies.To combat this, insurance providers are also progressivelylookingfor partnerships andbroadening their networks.

Becoming a part of a broader network has become essential for aninsurance agent. Long-term survival is almost impossible if you intend towork in a silo.However, with an aggregatoryou’llbe able to get a comprehensive picture of your market through information centralization. That will help youplan your next moves.

Statistareports that as of 2019,there are over72millionmillennialsmaking themthe dominant generation in the US.Exposed to digital technologies fromtheirearly years,millennials are digital natives. Thisshift in demographics opensdemands for tech-based services.Hence,you have to be able to play with theInternet of Thingsand smart devices.

Keeping up with evolving digital platforms, analytics, artificial intelligence, and interactive marketing modules is grueling. But through aggregators, you won’t have to worry at all. Your aggregator will set the platform and update it as required, while you only have to learn the basics of relevant insurance agency management systemto reap the benefits.

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When prospects requestaquote from their chosen carrier, they entermostof theirdata in the system. That means you will get an outline of the lead’s needsbefore youevencontact themandwillbeableto moreeasilydevelop a good rapport with them. Additionally, you can focus on gathering otherneededdata to moveaheadwith the submission.

Through an aggregator, your clients can enjoyaseamless insurance experience. Whether for inspection, insurance proposal submission, or insurance claim adjustments, the processing time is significantly reduced. An overall faster process will keep your clientsloyal to your services. It is an influential factor for customer retention.

According totheInsuranceInformationInstitute, auto, home, and business insurers in the US payroughly$30 billion annuallytowards fraudulent claims.Surprisingly, this amounts to about 10percent of theirtotal claimpayouts.Insurance companies are turning towards data aggregators and producers for predictive analytics and artificial intelligence to keepfraudulentcases low.

Since aggregators arepowerhousesof information, you’llhaveanadvantagewhen it comes toassessing your prospects and identifying anythingsuspicious. Limiting fraudulent claims lessens costs to the related carrier, leading to decreased policy premiums. It also means you can be a reliable source of business forboth the carriers and your clients.

Traditionally, insurers would not contractwithagents who could not bringinover a half a million dollars in premium volume.Establishing an independent agencywas considered remarkable. To overcome thischallenge, the concept of insurance clusters came intobeing.

The clusters allowed agencies to collaboratively share an insurance carrier contract and spread the premium requirement. However, the clusters had two major loopholes: Lack of control over the quality of business written and lack of professional management as an organization.

Insurance aggregators are the improved version of insurance clusters. Aggregators focuson market access, profit sharing, networking with insurers, and so on. An aggregator is the association of insurance agencies as well as the umbrella network of clients and carriers.This makesitclearly better than an independent agent acting alone, or an insurance cluster.

Aggregators are growing rapidly and globally. In varied countries like the UK, France, Spain, Japan, Italy, and India, insurance aggregators are progressively growing and attaining a share of the market. This trend demonstrates the reliability of aggregators in a variety of markets, and indicates a promising future for them.

While aggregators help clients get quotes from their intended insurance carrier in just a few clicks,anagent’sscope willnotdiminish. You will remain akeyasset in the value chain. The automated system provides quotes for generalpolicies but lacks the human touchnecessary forpersonalized service. The system cannot provide results for special requests and does not offer expert advice. For all these reasons, clients continue to seek agents.

What’s more,carriers’ progressive partnerships with aggregators meansgreater competition. Carriers will need agents to bring in new clients while ensuring that existing ones do not switch to other insurers. Sinceinsurance agentsareexperts in understanding prospects and making sales, you will have the upper hand.

Insurance aggregators are a disruptive force in theindustryand are necessary for independent agents to survive in this highly competitive market.Becomea part ofthiswinning strategy andgeton top of the competition.

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