WorkCOMPetition & Innovation
WorkCOMPetition & Innovation
Where is the SALES Innovation?
There are innovations happening all around us in the insurance industry. Fintech is all the rage. Unfortunately, most of the innovation aims to replace the agent as the distribution channel. If were not careful, some of it will succeed. It's not hard to envision a future where most small business insurance is handled directly by the carriers through website.
There will always be an argument that business insurance is just too complicated, and that professional services will always be required. However, that will not stop the gears of progress and steadily a certain percentage of customers will find their way online.
As brokers, it amazes me how we seem to watch innovation pass us by. First it was payroll companies that integrated workers comp into payroll services, effectively gobbling up huge chunks of the commercial insurance marketplace. Years after companies like ADP and Paychex have devoured the comp marketplace, carriers are just now offering PAYGO products to brokers.
Zenefits was the most recent example of a clever company using processes innovation to offer extremely helpful software that companies need and what was their chosen method of monetization? That's right, insurance commissions. Customers signed up quickly, turning over broker of record letters in drovers in exchange for benefits platforms that make employee administration very simple.
Rather than wait for the next Fintech startup to enter the marketplace and further gobble up customers that would normally come through the independent broker channel, it is time that we start to develop products that customers value.
Our goal here at NinjaRater is to provide market transparency, to brokers, customers, and insurance companies. Pricing should not be a secret. Nor should we ask customers for 4 years worth of historical data, supplemental forms, and days or weeks worth of waiting just to learn what the pricing will be from the various companies that provide workers compensation coverage to the marketplace.
Its time that we as insurance professionals push the envelope and make the simplest part of this process (pricing) take center stage. The most common concern is that if that information were known (which it basically already is) insurance companies would compete like commodities. Which is silly, because they already do. Insurance products are commodities. How brokers add value around that commodity is where the skill comes into play.
What if pricing were the easiest part of the sales process and the entire workers comp universe could be rendered in seconds? What if you could spend all of your time focusing on working with the customer to implement safety programs, return to work programs, and OSHA compliance protocols? Imagine not have to spend all of your time collecting data, just to be able to present pricing, the most basic information and that which takes the largest single component of our sales time presently. That's what NinjaRater does. It makes pricing super simple so that you can focus on doing the things that make you a valuable part of the process.
When we sales people start developing our own innovations and pushing value beyond that which we derive solely from the carriers, that's when we will be irreplaceable. We are continuing to push forward with additional innovations in the sales process. We hope you will join us for what comes next!