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Insurance Apps Shift To Private Insurance Companies

For many months insurance apps have been plaguing insurance companies. Are these AI devices going to replace the insurance industry as a whole? With the streamlined processing, isn’t there going to be a large hole in the clarity of insurance coverage for clients? All these questions buzzed in private insurance companies, insurance agents, and conglomerate insurance company’s minds.

Customer Experience Of Insurance Apps

As insurance apps developed, it became evident that there was a common negative experience with insurance apps. If you did not have any claims, it was an okay experience but the moment claims came in, the client (the person purchasing insurance through the app) quickly learned how little they were covered through the insurance app and quickly realized there was no one to talk to about their claim.

Insurance Apps In Review

Last spring, we wrote a series on insurance apps covering their core information as well as the core problems with the insurance apps. In all of them, the common negative review spoke of the lack of people involved when an insurance claim arose. See the past reviews here:

  1. The Pros & Cons Of Insurance Apps
  2. Root Insurance Review
  3. Neptune Flood Insurance
  4. Lemonade Insurance Review
  5. Ladder Life Insurance Review

What Are Insurance Apps Doing To Solve Their Weaknesses?

What is the solution for insurance apps? They streamlined their process and cut out hiring as many employees by having the apps produce large numbers of customers through effective digital marketing campaigns.

They had two options to manage the issue of lacking the personal side of insurance.

Option 1: hire a lot of employees and create a massive insurance network of employees to manage their clients. The reason they would need a lot of insurance agents, as well as a network of agents, is because insurance varies from state to state.

Option 2: Partner with existing insurance companies spread throughout the United States.

Benefits Of Insurance Companies & Insurance App Partnership

By partnering with the existing and local insurance agents throughout the United States, the insurance app companies overcome a large number of barriers. Additionally, the local insurance agents get a streamlined process to register new clients for insurance. It is essentially a win-win for both.

This partnership is highly similar to the local insurance company’s partnership with larger insurance providers. For instance, you contact a local insurance agent and get insurance through Progressive or Geico. That is the same thing they are doing with the new insurance app partnership.

How Will Insurance Apps Partnership With Private Insurance Impact The Industry?

Insurance apps and small local insurance company’s partnership is hugely beneficial. We will probably see private insurance providers and companies like State Farm producing more and more apps. As the apps flood the insurance market, they will start to lose their value and importance. Many insurance providers have online forms that can lead to an almost automatic insurance quote. For instance, we have one embedded on our website for flood insurance.

How Does This Impact People Purchasing Insurance?

All of these developments are designed around making a better customer experience. Whether you like the usage of apps or not, you will get an insurance customer experience designed for what you enjoy. The apps and your information will be handled better, and better services will be provided all the way around.

Strickler Insurance is excited about these developments because we love providing a great customer experience for our clients. Contact us for a free insurance quote for your home or business.