Amazon Insurance Company is coming and what should you do
Amazon, Berkshire Hathaway, and JPMorgan Chase have partnered on US employee health care. Lets refer it to as Amazon Insurance (for now). This news has led to falling of many health insurance stocks but will be a good thing for customers for sure.
If you are an insurance agency or an existing insurance carrier, you may be wondering how Amazon insurance (or whatever they name it ) may impact you and more importantly what should you do now?
Embrace Digital
Remember once Barns and Nobles was one of the largest players in selling books and when Amazon announced that they will be selling books via the internet, they were skeptical and thought it would not impact them. With technology, Amazon was able to grow exponentially and Barns and Nobles was left far behind.
Similarly, insurance space it is still not completely digital and most of the payers are spending a huge amount of money on their digital strategy to stay ahead. If insurance carriers and agencies don’t embrace the new technology and provide a digital experience they may face a fate like Barns and Nobles.
Currently, Amazon is entering the health insurance market but what is stopping Amazon insurance from entering other lines of businesses like life, property and causality etc. If you are selling say home or auto insurance you should provide customer ability to buy it completely online and get services like claim processing done digitally.
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Chatbots are new apps
Let’s take the example of Lemonade insurance which sells home and renters insurance and acquired 70,000+ new customers last year via Chatbot. They not only acquire customers via messaging, they also serve them by processing claims via Chatbot seamlessly.
How Lemonade Insurance got 70,000+ customers leveraging chatbot.
Many of our customers mainly insurance agencies have seen a good amount of traction by utilizing chatbots. They are able to reduce the cost of acquisition per customer as well as serve their customer via messaging.
Mobile apps were a new thing 10 year back and many companies that embraced them early could corner a large market for themselves. Today with a majority of customer segment spending most of their time on messenger, Chatbot is the new app. Adopting Chatbot now will help insurance agencies and carrier in long run to stay competitive against companies like Lemonade or Amazon.
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Personal Touch
You might have heard GEICO’s ad on the radio where they ask you to contact your local GEICO agent. Though GEICO achieved most of its initial success through direct marketing via the internet, they realize the importance of insurance agents and the personal touch they provide. Insurance is a complex product and it’s always good to have someone local who you can talk to and plan for various risks. I work with many insurance agencies and have seen them providing exceptional value to their clients.
We can compare this with Tax filling arena where many customers are filling their taxes via online services but many other people still prefer to file taxes through local CPAs and tax consultants.
Also, the major amount of insurance in the US is currently sold via agency channel. Opening local agencies is something difficult for Amazon Insurance to achieve. Having local insurance agency will always be a competitive advantage for insurance carriers and brokers. Hence personal touch is something which is a competitive advantage for local agencies and they should complement this with technology like chatbots.
https://www.friendlyagentbot.com/2017/12/08/best-chatbot-for-insurance-agency/
Hopefully, this article was useful to you and has helped in learning something new. Please share it with anyone who may benefit from it.
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