Insurance executives are trying to keep up with the rapidly changing marketplace. A 2018 Novarica study found that 63% of insurers planned to migrate to cloud-based systems in 2019, and that number continues to rise in 2020 for insurance companies that haven’t already made the switch.
With such a high percentage of insurance companies currently upgrading to cloud-based systems, migrating is essential for financial services executives to stay ahead of trends and seize opportunities for growth and efficiency.
Salesforce Financial Services Cloud for Insurance
Financial services companies leverage the Salesforce platform in different ways that make sense for their business needs. Early adopter insurance companies, like State Farm, use Salesforce Financial Services Cloud with add-on features. However, other financial services companies have implemented unique combinations of Salesforce products, like Sales Cloud, Service Cloud, and Community Cloud, or add-ons like Einstein Analytics.
Salesforce announced enhancements to Financial Services Cloud late in 2019, which extends functionality for insurers on the platform.
Recent enhancements to out-of-the-box functionality for Salesforce FSC include:
Agent and Service Representative Console - Easily access data on current policies and claims to make informed recommendations for coverage.
Lightning Flows - Automate common customer service queries across channels and apps.
Life Events - Predict customer needs with event triggers that connect major life changes to possible coverage adjustments.
The enhancements to Salesforce Financial Services Cloud make the product even more attractive for insurance agents, brokers, executives, and customers alike.
Salesforce Trends Shaping Insurance in 2020
It’s no secret. Cloud computing is here to stay, and more insurance companies are joining the digital transformation revolution than ever. However, staying ahead of competitors means keeping up with the latest industry trends.
Here are four trends dominating the insurance industry in 2020:
1. Marketing to underinsured populations
Millennials (born 1981-1996) are notorious for their preference to conduct business digitally when possible. Integrations available on the Salesforce platform connect internal systems to fuel digital tactics and seamless transitions between channels.
To meet the needs of younger clients, insurance providers are increasingly implementing mobile applications and web-based user interfaces clients can use to enroll in plans, make payments, and better understand their coverage.
However, Millennials remain a largely underinsured group, which makes marketing to them even more important. A 2019 CB Insights study revealed a coverage gap among Millennials making them the most underinsured generation when it comes to buying life insurance policies. Life insurance companies are taking note and switching to new approaches that attract and retain Millennial clients.
Life insurance providers are using AI tools to assess coverage gaps by analyzing customer-provided data like nutrition and sleep habits. Then, the provider can tailor product recommendations based on those identified coverage gaps.
2. Gaining buyer confidence through product comparison tools
Prospective clients expect transparency, and product comparison tools allow them to see how their coverage details relate to the premiums they pay.
With seamless integrations available through the Salesforce platform, product comparison tools enable insurance agents and brokers to easily explain differences in insurance plan coverage so they can empower clients and prospects to make informed decisions.
Insurers can implement product comparison tools by working with a Salesforce partner, or by purchasing product comparison solutions available on the Salesforce AppExchange.
3. Automating quote-to-issue processes
Perhaps the greatest advantage CRM technology offers is automation. It reduces duplication of efforts, expedites processes, and even saves paper. Applying automation to the insurance quote-to-issue process makes customers happy and provides the convenience of easy checkout.
With automations in place, customers and prospects can use self-service applications to enter their information, request a quote, and purchase a policy. This process allows agents to focus more time on building relationships with existing clients and assisting with claims processing.
Using a combination of Salesforce cloud products, automations seamlessly provide straight-through processing during underwriting and approval stages to issue coverage quickly and efficiently. Digital quote processing can also act as a lead source for sales teams — even if customers abandon quote requests. In addition, the Salesforce platform provides an all-in-one view of conversion rates and channels used during the quoting process.
4. Increasing staff training for cloud-based systems
Companies in the process of digital transformation have found roadblocks when it comes to teaching agents and internal personnel how to use it. These emerging technologies are so new that finding employees who have experience using the platforms can be challenging. Many insurers turn to Salesforce partners to implement the platform and provide ongoing support, but they still need internal teams who understand how the system works.
Using data to its fullest potential is achieved when internal departments know how to gather and analyze metrics. In addition, Salesforce AI tools are dependent on the data they are fed, which makes it increasingly important for system users to understand the data they are gathering.
Insurance companies that invest in education for their internal teams will see the most ROI after a digital transformation. While in-house training is helpful, Salesforce partners can provide training to internal teams throughout the implementation process and beyond.
Solving Insurance Puzzles with Salesforce
The lab coat experts at CRM Science love solving the unique challenges enterprise financial services companies face. We’ve even developed an app to make migrating to the platform easier and more efficient. Contact us to chat about your technical puzzles, and we’ll work together to find a solution.