Follow the Strategies to Stay Competitive In the US Insurance Market
When you talk about the United States insurance industry equaling to $1.2 trillion in the year 2017, there is much wide scope and potential for the industry to grow and prosper. According to the US Bureau of Economic Analysis, the industry makes a contribution of $602.7 billion to the nation’s GDP (Gross Domestic Product).
The main line of business mainly comprises of insuring the auto sector, residential properties, commercial premises, and human life. Moreover, the rate of employment in the sector is even higher with the evolving trend and increasing demand of safety against risk and uncertainties. In the current scenario as estimated by the U.S. Department of Labor in the year 2018, more than 2.7 million professionals are employed, out of which 870,600 workers for health and life insurance, 29,100 workers for reinsurers, and other for miscellaneous jobs in the existing insurance companies in the U.S. On the go, new entrants are not taking a stopover and are constantly venturing with new hopes and high monetary aspirations.
In addition to this truth of insurance sector in the United States, the wider picture of insurers becomes even more competitive. The key factors contributing to this tough competition are raising rate of interest, higher income segregated for investment, and persistent economic growth. Furthermore, there calls for a need to stay ahead in the competition with thoughtful measures to meet the forthcoming challenges like new trade rules proposed to be introduced and high potential for economic slowdown.
Important Strategies to Consider for Competitive Growth
In a competitive environment like this, it becomes important to follow the strategies. Some of the most effective strategies include:
- Focus on Technology: In this digital era, it is important that every sector start getting into knowing and understanding the digital benefits of any business. Many insurance companies are still following the traditional approach to promote and operate their respective functions. However, it is important to enter the digital phase of business operations and streamline all processes digitally to have a competitive edge over others. Digital transformation is the need of the hour and that is what plays an integral role in stimulating the growth bars of business organizations.
- Competitive Cost: Having a competitive cost is another important strategy to follow when competing in the sector. Customers often look out for higher benefits with minimum investment, hence, an insurance product with a cost that is lower, is more prone to attract customers. In the process, evaluate all possible risks and work to improve profit margins.
- Streamlined Process: All the processes from filling the insurance form to applying for claims should all have a streamlined process. The company should be able to deliver efficient policies. Integrate the best solutions including enterprise management, policy administration, workflow process, case management and records maintenance to automate and standardize the process.
- Exceptional Customer Service: Threat of competition is eating almost every service provider in the market and talking about customers, almost everyone aspires to have the best customer service support. Rather than buying the product or service, customers get more attracted to the effectiveness and timeliness of support and guidance they receive concerning the purchased product or service. Hence, when selling auto insurance, life insurance, home insurance, or any other form of insurance product, it is important to ensure that all your customers are satisfied with the way you reach out to them during times of need. This also includes settling fast and accurate claims.
The current market situation and the threat of future challenges have empowered all the insurance companies to re-evaluate their strategies, active approaches, and innovative methodologies for a better outlook of the forthcoming insurance sector. Each company is looking forward to gain the first position but not all can be a part of the small portion streamlined at the threshold of the insurance sector. The company with the power and caliber to put maximum efforts synchronized with smart moves is sure to attain the position and create a benchmark.