It’s hard to believe that just a few years ago, people were buying their insurance products the same way they buy toothpaste or shampoo. They’d go through an agent or broker and pick the product with the best price and coverage. But in today’s world, where consumers are more informed than ever, that traditional way of buying insurance is starting to change.

Thanks to the internet and new consumer trends, we’re seeing more people shopping around for the right policy and carrier. That’s causing a lot of upheaval in the insurance industry, as carriers struggle to keep up with changing customer demands. So what are these new consumer trends? And how are they affecting insurers?

Here’s a look at some of the biggest ones.

The Rise of the Internet

The internet has made it easier for consumers to shop for insurance. And that’s causing a lot of problems for insurers. Because customers can now easily compare prices and coverage, they’re no longer as loyal to any one carrier.

Consumers these days are more likely to switch if they can find a better deal elsewhere. And that’s causing insurers to lose a lot of business. According to a study conducted by Accenture, up to 53% of consumers consider switching insurers. They realized that since they can compare deals on the internet, they get to save more money on insurance while optimizing their premiums.

Furthermore, the internet has made it easier for consumers to purchase insurance directly from carriers. In the past, most people would buy their policies through agents or brokers. But now, with a few clicks of a button, they can bypass the middleman and get their coverage directly from the source.

What does this mean for insurers? They need to ensure their online presence is strong enough to attract and retain customers. They also need to be prepared for the fact that fewer people will be buying their products through agents or brokers.

One way to do this is by offering more discounts and incentives for people who purchase directly from the carrier. This will help offset the loss of business from agents and brokers.

Another way to adapt is by offering new types of coverage that can only be bought online. For example, some insurers now offer short-term health insurance plans that can be purchased directly from their websites.

Increasing Threats of Fraud

Fraud is always a big concern for insurers. But it’s becoming an even bigger problem as consumers become more sophisticated in their methods. Take fraud network attacks, bot attacks, and synthetic identities as examples.

Reports show that insurance fraud costs American consumers up to $80 billion each year. As fraud becomes more prevalent, insurers are starting to change how they do business. They’re using new technologies to detect and prevent fraud.

One way insurance companies can fight fraud is with the help of a fraud detection software. Such a tool helps insurance companies accomplish different tasks to detect and stop fraud. Some things a reliable fraud detection software can do are to:

By fighting fraud, insurance companies can save billions of dollars each year. And that’s good for both the carriers and the consumers.

The Growing Importance of Customer Experience

Customer service is becoming increasingly important as the insurance industry becomes more competitive. Customers these days are more likely to switch carriers if they’re not happy with the service they’re receiving.

And it’s not just about providing good customer service. It is also about providing a great customer experience. But what’s the difference?

Customer service is the act of helping customers with their needs. Customer experience, on the other hand, is the sum total of all the interactions a customer has with a company. It starts with the very first interaction a customer has with a company.

Customer experience could be when they visit the company’s website, make a phone call, or even see an ad. And it doesn’t stop until after they’ve made a purchase and become a loyal customer. Every touchpoint along the way shapes the customer’s experience.

Thus, insurers need to focus on providing a great customer experience. They need to ensure that every interaction their customers have with the company is positive. They can only hope to attract and retain customers in this competitive landscape.

Insurance companies can boost customer experience using customer relationship management (CRM) software. CRM software helps businesses manage their interactions with their customers. It also helps businesses track customer data and analyze it to improve their marketing efforts.

With CRM software, insurance companies can provide a better customer experience by:

By using CRM software, insurance companies can provide a better customer experience. And that’s something that will definitely help them succeed in this competitive landscape.

These are but three of the many consumer trends changing the insurance industry. As the needs of consumers change, so too must the insurers. Those who don’t will find themselves struggling to keep up. But those who do will find themselves well-positioned to succeed in this ever-changing landscape.