Michigan Insurtech Insights
Insurtech is highly important to the insurance industry as it refers to the technology and advancements responsible for creating, distributing, and administrating all areas of insurance business.
Think about everything that is used to collect and analyze data from mobile apps, wearables, claims processing tools, online form submissions, quoting, etc. All of this and more stems from insurtech or insurance technology.
It is said throughout the industry that insurance is slow to adopt change and new tech. So, we wanted to put that theory to the test in Michigan. Below are a few insights from our survey. You can view the whole report here or at the end of this article.
I.T. Efficiency
The survey first takes a look at Michigan insurance companies I.T. solutions and hardware. Such as how they handle their I.T., type of devices, how many devices per employee, top tech challenges and more. Below are a few stats from the report.
Solutions & Hardware
58.83% of Michigan insurance agencies use outsourced I.T. support.
Slow computers was the most reported I.T. challenge of 2019.
The leading brand for laptops, desktops, and servers was Dell.
Software
70.83% of the respondents software is hosted in the cloud.
80.95% of Michigan agencies surveyed use E-Signature Functionality.
One of the most common top challenges with the software they currently use is not using software to its full potential.
Staffing
Next we asked respondents about their staffing. From the average number of employees per position and their salary to their top staffing challenges and more.
Here’s what we found:
On average, respondents has five CSRs per agency.
The average salary of producers in 2019 was between $50,001 - $70,000.
A common staffing challenge reported was ‘Workflow Management.’
Operations
Lastly, we wanted to gain a better understanding of the way Michigan insurance agencies operate. We surveyed our respondents on their average number of claims per claim category, total revenue, and their biggest challenges and successes from the previous year.
This is what they said:
4.35% of Michigan agencies had more than 46 personal auto claims in a month!
A popular response to their biggest business success in 2019 was retention.
The average total company revenue in 2019 was $1, 806, 543.50.
How An MSP Can Help
By partnering with an MSP that specializes in I.T. specifically for insurance you are able to set your mind at ease…at least from tech and compliance problems.
Your MSP should be extremely knowledgeable in HIPAA and record-keeping requirements--both must be considered to stay up-to-date with the changes in regulations.
Not to mention, understand that your needs are complex with a lot of moving parts; including various carrier sites, printing/scanning requirements, client retention and so much more.
All while keeping you and your staff equipped with updated hardware every three years, so you don’t fall behind the tech curve and risk running on non-compliant systems or software.
Conclusion
As mentioned earlier, it’s said throughout the industry that insurance is slow to adopt change and new tech. However, after diving deeper into Michigan insurance agencies I.T. efficiency, staffing, and operations we gained a better understanding of where agencies stack up against each other and this may or may not be the case, but you’ll have to take a look at the report for yourself to see where your agency falls.
The above was only a small glimpse into the 2019 Michigan Insurtech Benchmarking Report, you can view the rest of the report below. How will you make a change?
