Large and successful insurance agencies are more likely to spend more on sales and marketing technology tools, as compared to smaller ones, says a joint study released by Velocify and Insurance Technologies Corporation (ITC). Larger insurers also use more of such technologies, according to a report published by Canadian Underwriter.
Small agencies and the ones that are seeing shrinking and stagnant revenues are showing reduced interest in technology investments as compared to the larger ones.
What is common amongst large and small agencies is that both under-utilize most effective sales and marketing technologies. This is creating an opening for insurance laggards to leap to the forefront, the study believes.
“The results point to a technology-related performance gap in the insurance industry, which will only continue to grow, according to the investment plans of the agencies surveyed,” states a press release issued by Velocify.
Agencies with 100 or more employees were 93% more likely to invest in technologies, on average, than those with 10 or fewer employees to use each technology. Direct-to-consumer agencies were 26% more likely to than independent agencies to report plans to increase their technology investments. The study surveyed more than 1,000 North American insurance agencies.
Impact on revenue
As per the study, agencies that rely heavily on sales and marketing technology tend to have greater revenue growth and sell more insurance policies per producer which is around 43% more. The per household sale is also higher by around 13%. Heavy technology users are twice more likely to have better sales processes.
The study also revealed that there is a strong correlation between heavy technology use and increasing productivity in automated dialers, marketing automation, lead management software and consumer relationship management (CRM) software