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How automation is transforming the insurance industry

Like most industries in 2020, technological advances are changing the landscape for independent insurance agencies like ours. From business development to IT to claims management, technology shapes our processes, efficiency, and success. At Pepper, Johnstone & Company, we care about staying ahead of the trends and maintaining our business at its highest potential. We’ve taken a look at the five emerging insurance trends for 2020, and we believe that the rise of automation in our systems is a key trend that garners attention. 

How does automation affect independent insurance agencies?

Intelligent process automation

While automation will play a role in helping us find a solution for our clients quickly, we’re expecting to see an increase in intelligent process automation (IPA). Automation through an IPA system allows independent insurance agencies to be more productive and use their time to focus on more significant tasks. Additionally, implementing automation can help improve claims processing, policy administration, risk management, and other internal processes. The use of algorithms and other software will lead to quicker, more efficient, and more accessible data. This data will then lead to better decision making, which will better enable our agency to provide additional value to our clients when helping them find the right combination of personalized insurance coverage.

Changes in employment 

Automation provides an avenue for independent insurance agencies to be more efficient and cost-effective with their labor force. An increase in automation would drive demand in the industry for jobs specializing in data analytics and the development of algorithms. However, there would likely be a shift in what support roles would look like within the insurance industry as a whole. Even insurance careers in new business development, management, and sales will change and develop with technology.

As jobs change at all levels across the insurance industry, it’s important to note that technology will not replace human labor and talent as a sustainable competitive advantage in the long term, especially when it comes to insurance agencies that rely heavily on personal interaction. Instead, automation will bring about new jobs with renewed job descriptions. 

As an independent insurance agency, our goal is to provide personal, relationship-centric, and consultative service that will only be enhanced by automation on the back end. Providing personalized insurance coverage that suits the needs of our clients is something that could not be accomplished by impersonal algorithms alone. 

Personalization and the customer experience 

Another benefit of automation used by insurance agencies is the simple, constant collection of data. With automation in place, independent insurance agencies can collect data from a wide array of sources, such as social media. With more and more data accumulated, agencies like ours will be able to offer more personalization to the customer experience. 

Our insurance agency provides individualized service and utilizes automation to meet our clients where they need us most. Overall, automation will increase the customer experience by recognizing patterns and analyzing data that will help them find the right combination of personalized insurance coverage.

For 2020 and beyond, you can expect Pepper, Johnstone & Company, and others in the insurance industry, to be more attentive, responsive, and effective as we implement new technology and systems into how we serve our clients. 

Pepper, Johnstone & Company is independently owned and locally operated to handle your insurance needs, be it commercial insurance, home insurance, or just general insurance.  We focus on Athens and offer affordable and reliable insurance choices all across Alabama, Georgia, Mississippi, North Carolina, South Carolina, Louisiana, and Tennessee.  We will help you find the right combination of tailored, personalized insurance coverage at just the right price to fit your needs. Contact us today to learn more about how we can help you.