Question Details

(solution) I only need you to use newsletter format to format my paper


I only need you to use newsletter format to format my paper  


How Traditional Insurance Sales is disrupted by Online Technology

 

Nearly, technological innovations and new entrants affect or disrupt the traditional way of

 

operation almost in every industry. The participants in these industries are forced to adapt to

 

the changes and come up with means for survival. Over decades, insurance industry has not

 

experienced the kind of pressure from outside errands and technological innovations that are

 

currently facing. Below are various new entrants and technological innovations that have a

 

larger impact on traditional sales insurance.

 

To start with, the most outsider errant threating agents in the insurance industry is Google.

 

The technology giants have previously caused disruptions in lots of industries to achieve its

 

great success, talk of health, navigation, travel, email and now insurance. With its dominance

 

of the search space, many people use it to search for best insurance companies, cheapest

 

policy and steps to follow to acquire insurance information. As a way of eliminating this long

 

steps and being used only as a search engine, Google has ventured into insurance business

 

itself, launched as ?Google Compare?. Instead of a person using google to search for

 

insurance companies or cheaper policies, Google will be there ready to provide the service

 

more effectively and efficiently with a cheaper cost. With such in operation, no agent will be

 

needed since everything will be provided online in a more clear and simple manner.

 

Furthermore, Google has teamed up with different insurance companies of all sizes to help

 

them in business writing and determination of individual risks. It also allows them to quickly

 

search for the rates and compare the policies, ?Pound for pound,? the work which was being

 

done by agents. To manage all its large customer base and ensure that it provides insurance

 

services of high quality, Google has come with different technological innovations;

 

First is the Millennials Trust Google which was created to familiarize itself and elicit trust

 

with the consumers. It is aimed at increasing the number of consumers who will prefer to

 

purchase insurance cover from online providers other than traditional insurers. This was

 

arrived at, after the research showed that consumers lack confidence in most insurance

 

companies since they are not transparent in their operation. This creates an uneasy tension in

 

the industry. Besides that, it is largely believed that most millennials trust Google with their

 

information than they trust insurance firms. They share more confidential and private

 

information with Google than they do with insurance companies. They also trust other

 

consumers more. In response to this, Google has created a platform that compares feedbacks

 

from the user hence promoting transparency which traditional insurance providers lack. This

 

confirms that the survival of traditional insurance agent is highly endangered.

 

Secondly Google has established a preferred Consumer Platform that enables consumers to

 

find their preferred policy at a cheaper price. A group product manager of Google, Stephanie

 

Cuthbertson recently reported that since its launch, Millions of people have used it to find

 

quotes they prefer. Among those who obtained quotes using Google, half of them have

 

confirmed that the policies were much cheaper than the policies in existence. An agent was

 

only involved for the sake of consumers? peace of mind before purchasing the policy and not

 

necessarily providing any advice to the consumer. This means that with time, consumers will

 

be convinced and there will be no need of them speaking to an agent before the purchase. So

 

what will be the work of an agent?

 

Finally Google compare has partnered with global insurance industries such as CoverHound

 

which is specialised in renters and homeowners insurance, Insurance Technologies

 

Corporation and Comparenow. This points out clearly where google compare will be in next

 

few years. It will also give Google compare an opportunity to interact with so many customers in different insurance companies identifying their specific needs. Eventually

 

Google compare will be in the better position to provide all these insurance policies in the

 

best manner ever that will leave insurance agents jobless.

 

Another company that has start venturing in the insurance industry is Walmart. By the fact

 

that it has entered into the partnership with AutoInsurance.com confirms that it has an interest

 

in the insurance businesses. Auto Insurance has leased Walmart a space. This has given a

 

supermarket a chance to interact with over 140 million individuals who visit the company

 

weekly to do their shopping. This is also a threat to the insurance agents since Walmart with

 

its financial stability and global interaction will provide these services in a modern way that

 

will not require an agent to intervene in the process of selling policies.

 

Beside new entrants in the insurance industries, innovative technologies are also contributing

 

to the eradication of human agents in their companies. For instance, some insurance

 

companies such as PolicyGenius and CoverHound have started providing online insurance.

 

Online means doing away with mediators, represented by agents, Others like Comparenow

 

don?t use agents to get policy prices or fee ,rather they do it themselves immediately after the

 

client has purchased the policy by sending traffic to insurer. Whichever the case, at the end of

 

the day, Main Street agents are pressed by showing insurers prices side by side and

 

automating the whole process.

 

In his article, ?The Insurance Industry in 2015: Trends and Innovation,? Parker Beauchamp

 

outlines four major technological and innovative trends that have taken place in the insurance

 

industry that are threatening the survival of traditional insurance agents. The innovations

 

include; big data analysis programs, Mobile insurance, Re-Engineering Underwriting and

 

Cloud/Client Computing.

 

Under big Data analysis program, the new program is developed to improve efficiency in the

 

insurances process by assessing fraudulent claims or improving on how one can fully meet

 

customer needs and demand in response to environmental and economic changes. The

 

program also consists of the evolving dashboard for data that compiles metrics from multiple

 

locations into a visualized platform hence providing clients with all information they need.

 

With such in practices, the services of insurance agents will no longer be needed.

 

Another technological innovation is Mobile insurance. Most insurance have taken the

 

advantage of the advancements that mobile phones have gone through. The insurance

 

companies have offered mobile applications that make it easy for clients to access their

 

accounts, make inquiry, obtain insurance quotations and claim any support. The technology

 

has also enabled policyholders to connect directly to the insured via mobile phone. The two

 

parties are able to exchange information directly.

 

Finally, cloud/client computing defined as ?the practice of sharing a network or remote

 

internet servers to store, manage and process information.? Operating this way helps

 

companies to optimize Innovation and Technology that will see them doing away with agents.

 

Additionally, the technology enhances business preparations for everything from potential

 

data loss disasters to growth of the product or service. Integrating the network means that

 

insurers will be in a better position to get in touch with their clients or consumers directly. In

 

simple terms, it means that the network integration eliminate an agent from the insurance

 

company. Reference

 

Beauchamp, P. (2015, February 18). The Insurance Industry in 2015: Trends and Innovation.

 

Retrieved November 22, 2015, from http://www.inguard.com/blog/the-insurance-industry-in2015-trends-and-innovation.

 


Solution details:

Pay using PayPal (No PayPal account Required) or your credit card . All your purchases are securely protected by .
SiteLock

About this Question

STATUS

Answered

QUALITY

Approved

DATE ANSWERED

Sep 13, 2020

EXPERT

Tutor

ANSWER RATING

GET INSTANT HELP/h4>

We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.

You can also use these solutions:

  • As a reference for in-depth understanding of the subject.
  • As a source of ideas / reasoning for your own research (if properly referenced)
  • For editing and paraphrasing (check your institution's definition of plagiarism and recommended paraphrase).
This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student.

NEW ASSIGNMENT HELP?

Order New Solution. Quick Turnaround

Click on the button below in order to Order for a New, Original and High-Quality Essay Solutions. New orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.

WE GUARANTEE, THAT YOUR PAPER WILL BE WRITTEN FROM SCRATCH AND WITHIN A DEADLINE.

Order Now