Peter Mendesund once said that “Writers closely observe the world and record their observations.” Lewis Carroll proved this when he penned Through the Looking Glass, the sequel to Alice’s Adventures in Wonderland. In Through the Looking Glass, Alice finds herself running harder and harder. But no matter how fast she runs, she continues to stay in the same place.
While he may not have had it in mind when he wrote the novel, Carroll’s writing resonates deeply with the world of insurance. The Red Queen Dilemma refers to the idea that, if one becomes complacent, they will fall behind. When it comes to insurance, this is true in many ways.
The insurance industry tends to be regarded as the poster child for paperwork and monotonous systems. This reputation is not out of step with reality. For decades, the act of providing coverage often required multiple players, conflicting incentives, and the coordination of customers that operate on tight, impossible schedules. Moving forward, there are many factors that have the potential to disrupt the way the cyber insurance industry works.
Times are Changing
In the case of cyber insurance, technological and societal changes have made underwriting the product extremely challenging. Here are some changes that are shaking up the norms of traditional cyber security companies:
The Rise of Remote Work
Remote work has led to the rise of new working patterns. Splunk, a data analyzation company, recently released a 2022 State of Security Report. According to Splunk, the percentage of people working remotely rose from 21% to 46% between 2019 and 2022. Empirically speaking, this increase is quite large. As remote work becomes more mainstream, cyber insurance brokers must have the ability to conduct deals between different computers, networks and even timezones.
The Power of Search
Internet searches happen instantly. When a potential customer decides to engage with your business, it is imperative to have a framework in place to respond to any and all inquiries. Is your website doing enough to keep customers interested? And is your team equipped to interact with customers before they lose interest?
Where are the Customers?
Insurance brokers routinely compete on coverage plans, customer service, and general knowledge within the industry. But one of the biggest challenges in the insurance space has nothing to do with insurance itself. It has to do with marketing. The insurance industry seems to be crawling up a never ending mountain of customer acquisition. These days, it is simply not enough to rely on one’s current clients for future business. Many insurance brokers are turning to internet advertising to get an upper-hand. In order to play this game, insurance companies must put forth significant resources – resources that may once have been earmarked for expenses such as overhead.
Stay Ahead of The Curve
The introduction of technology has been unsettling for some insurance brokers. Industry incumbents are aware that the world is constantly evolving, and players are trying many things to avoid being left behind. While it’s important to understand the factors that will move the insurance industry into the future, the question is: How can cyber insurance brokers move forward in a fast-tracked world?
Here are 3 ways cyber insurance brokers can avoid falling prey to the Red Queen Dilemma.
“If a battle cannot be won, do not fight it.” - Sun Tzu
Technology is not going away any time soon. Indeed, today’s biggest companies are those that are actively pushing the needle forward. As an insurance broker, one thing is clear: The future of insurance will be technologically enabled. Companies that wish to move at the pace of the technology industry will need to heavily consider the extent to which they are using cutting edge technology at their own firm. Luckily, companies like Apollo Brokers can provide access to some of that technology, including quick, easy quotes that brokers can use to satisfy clients.
Think About the Customer
Brokers must do everything they can to gain the trust of their audience. With the rise in competition across the industry, they must fight tooth and nail in order to gain (and keep) happy customers. A broker should consider all the ways their customers might find them. Perhaps they are scrolling on Facebook. Maybe they are learning about cyber insurance policies through Google. They could be coming directly. Whatever the case may be, brokers should keep customers in mind, and consider that there is often more than one way to reach them.
Stick to Core Principles
The future is a long-term game. The companies that exist ten years from now will be the ones that readily innovate their systems today. It’s worth noting that, even if the rate of change seems concerning at first, Apollo’s team is here to assist brokers every step of the way.
The Apollo Perspective
Apollo Brokers is a digitally-native wholesale insurance broker working on behalf of retailers in multiple lines of insurance and across the United States. Our platform allows clients to:
- Obtain instant quotes from top cyber insurers
- Find up to $3M in Insurance coverage automatically
- Receive a plan with customizable and comprehensive coverage
- 24/7 support
Apollo Brokers is building a lean, tech-enabled business that can efficiently deliver insurance policies which are tailored to the needs of individual clients. We have taken some of the first steps to revolutionizing the industry and welcome you to learn more on our website: https://www.apollobrokers.com/index.html
You can also reach out and connect with us on LinkedIn.