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Four Key Insights on Consumerism, Technology, and the Future of Insurance Brokers

Adapted from Nexben’s Technology Showcase at the 2022 BenefitsPRO Broker Expo in Austin, TX, May 23-25.

Each year the nation’s top brokers head to the BenefitsPRO Broker Expo to network with industry leaders and discover the latest tools, strategies and solutions that will enable their business to thrive, both today and in the future.

Nexben was proud to host one of the technology workshops at this year’s expo held in Austin, TX.

Presented by Julie Halgren and Justin Safranski, Nexben’s VP of Marketing and Director of Strategic Partnerships, the workshop focused on the ways technology and modern consumerism have given rise to insurance technology, and how brokers can stand out and meet the demands of modern clients by embracing new tools.

Here are four core takeaways from the presentation.

1 – Technology has transformed consumerism.

Today’s smartphones and technology are rapidly changing how consumers shop and spend their dollars. Consumers can now conveniently collect data, compare data and connect with family and friends about important decisions, all from the comfort of home or a mobile device.

As a result, consumers have increasingly come to expect a digital shopping experience. They also demand better information, transparency and personalization throughout the shopping experience.

These evolving expectations from consumers apply to all products and services—including health care and health insurance.

Yet while other industries have adopted more personalized, digital means for consumers to compare and buy, the health care and insurance industry has lagged behind.

2 – Millennials are driving the shift.

In 2016, Millennials surpassed Generation Xers (ages 39 to 54) to become the single largest generational group in the U.S. labor force. By 2025, they will make up a whopping 75 percent of the total work force.

Why does this matter?

For starters, millennials shop, eat and take care of their health differently than other generations. As ‘digital natives,’ they crave speed, convenience and personalized experiences.

Millennials’ modern priorities extend to health care, too. Research shows this generation cares more about health benefits and other work perks than any other generation before them.

Employers and insurance brokers should take note. Millennials are growing up, and they’re expecting to manage their health care and insurance with the speed, convenience and personalization with which they were raised.

3 – Insurtech is rapidly growing.

The insurance sector has been notoriously slow to adapt to change, but tech innovators and investors are clearly seizing the opportunity to disrupt this industry to meet the demands of modern consumers.

Effective and efficient technology-based solutions for managing insurance are not only on the rise—they are exploding. Insurtech raked in $19.8 billion in capital investments last year, a whopping 175 percent increase over 2020.

Key factors driving growth in the insurtech market are the needs to improve business efficiency and provide a better, more personalized, experience throughout the insurance customer journey.

Companies emerging in the insurance industry are creating new, innovative solutions to tackle the thorny issues that drive costs and detract from providing the optimal customer experience.

4 – Brokers who embrace innovative technology will become tomorrow’s leaders.

Legacy systems, tight regulations, lack of IT spending and prioritization—health insurance brokers can face several challenges to adopting new technology. However, the world is changing rapidly. Modernizing operations is vital to the success of the insurance industry, and for clients purchasing benefits.

Technology solutions now available are helping to rapidly reinvent the entire value chain of the health insurance industry—from carriers to the end consumer.

The Nexben platform, for example, allows brokers, carriers, employers and employees to easily and seamlessly interact in real-time throughout the entire insurance journey—from quoting and proposing to managing and billing.

Leveraged effectively, technology can set a broker apart from the pack. It can identify new growth opportunities, help close sales with illustrative tools, and reduce time spent on paperwork and other servicing burdens so brokers can focus on what really matters: nurturing relationships and growing their business.

The insurtech revolution is here. It’s happening. Brokers can either evolve and meet the demands of today’s consumer or get left behind.