The global insurance market has grown remarkably in recent years. Between 2020 and 2021 alone, it grew about 13%. Looking ahead, this impressive growth should remain, with experts projecting a CAGR of 8.5% for the global commercial insurance industry through 2028.
Given the steady growth expected in the industry, the competition among insurers will only continue to rise. As a result, insurers must find innovative ways to stay ahead and remain relevant in the field.
Reaching potential new policyholders is a critical aspect of staying competitive, but doing so successfully requires understanding how to overcome the market’s headwinds and identify where there is potential for growth.
Today, insurers face several challenges when trying to expand their policyholder base, primarily:
Understanding Policyholder Needs & Preferences
Policyholder demands and preferences continue to evolve, and insurers must keep their finger on the pulse of their changing needs. Some dominating consumer demands include quick and convenient service and personalized offerings. In fact, nearly 90% of policyholders demand more personalization from their providers.
Insurers that want to boost policyholder acquisition must be prepared to meet the expectations of modern consumers and adapt their approach as consumer demands evolve.
Successfully Implementing an Omnichannel Experience
With the world becoming increasingly digital, it’s never been more important for insurers to offer a high-quality omnichannel policyholder experience that gives policyholders the level of convenience and personalization they want.
Policyholders should be able to initiate a claim online with the help of a chatbot, follow up on the claim with an agent over the phone, and provide supporting documentation for the claim over email without any snags or friction in the process. However, successfully implementing this process will require strong coordination and execution.
Despite these challenges, insurers can take advantage of a few key opportunities when it comes to reaching new policyholders:
Entering New Markets
Insurers can identify new and untapped markets to expand their policyholder base. Even amid stiffer competition in the overall market, there are still areas where consumers are underserved or their needs aren’t being met. Insurers looking to take advantage of this opportunity can start by exploring emerging markets worldwide, serving new geographies, and offering new products where they see gaps in the market.
Focusing on Sales Workflows
Efficient processes can help insurers enhance their sales. Consider this: nearly 75% of customers that attempted to purchase insurance online experienced issues. So even though the consumers expect to be able to purchase and manage their policies online, this isn’t always executed effectively by the insurer.
Insurers identifying bottlenecks in their sales process, optimizing their online communication channels, using policyholder data to personalize offers, and effectively training their staff to offer valuable and on-brand service will come out on top.
How the Right BPO Partner Can Help
The current insurance landscape is evolving at a pace like never before. Insurers that want to expand their reach and attract more policyholders can take full advantage of market opportunities by partnering with a Business Process Outsourcing (BPO) provider.
BPO partners like Covenir have talented and experienced onshore teams to help insurers get the people power they need to compete and stay ahead in today’s market. We make it possible to offer personalized service and easily adapt to changing consumer preferences.
Your internal team can focus on strategic tasks while we take care of the rest. From consistent, on-brand policyholder experiences to back-office support, we can help you take your operations to new heights.