Technological challenges faced by insurance agencies are creating opportunities for new companies in the industry.
According to Future One and the Independent Insurance Agents & Brokers of America’s biennial Agency Universe Study, technology poses one of the top challenges for insurance agencies; 21 percent of survey respondents ranked it as their biggest challenge, and 46 percent placed it among their main three challenges.
These challenges have created opportunities for growth among companies that help agencies use technology effectively. EZLynx is one such company. Founded in 2003, EZLynx ranked among the top comparative raters and agency management systems in the study — little more than 10 years after the company was started. According to the study, more than one-third of agencies that use a comparative rater rely on EZLynx, and the company ranks among the four most popular management systems.
When asked about the specific types of technological challenges they face, agencies repeatedly mentioned two: dealing with multiple carrier interfaces and effectively marketing on the Internet. Providing real-time quotes for auto and homeowners insurance was also mentioned by 12 percent of respondents. Although a minority of agents cited providing real-time quotes as a significant technological challenge, this marked the first time real-time quotes registered above 10 percent in the study.
These findings help explain the rapid growth of EZLynx. As a comparative rater, EZLynx helps agencies market themselves online using real-time quotes. The study found that 52 percent of agencies use comparative raters for just this reason, but this is not all that EZLynx does. The comparative raters that are able to add additional value through other online marketing efforts are the ones that have grown to the top in recent years. By complementing its real-time quotes with other services, EZLynx has established itself as the most prominent comparative rater. Of the agencies that use a comparative rater, 36.5 percent work with EZLynx.
Brady Polansky of EZLynx reflected on the study’s findings: “We’re proud that two-thirds [67 percent] of the study’s respondents rated EZLynx as either ‘very valuable’ or ‘extremely valuable.’ That shows that we are truly helping agencies through our comprehensive, web-based solution.”
EZLynx also holds a commanding position among insurance agency management systems, ranking among the top four in market share as the fastest growing management system of 2014. Polansky explains why adding a management system to EZLynx was a natural step: “We’re a technology company that works with insurance agencies. Agencies said they were struggling with the lack of innovation and bloated cost of their existing management systems, and we thought we could develop a solution that was far superior. We already had a relationship with these agencies through our hard earned success with comparative rating, and we had the expertise to solve the problem, too.”
The study found that growth among insurance agencies from 2012 to 2014 was stagnant, but technological advancements created opportunities for other companies in the insurance industry. No company has met agencies’ changing technological needs as well as EZLynx, which is why it has achieved unparalleled growth among comparative raters and agency management system providers.
To learn more about the solutions EZLynx offers, contact EZLynx at 877-932-2382 or email [email protected].
If you’d like to learn more about the study, please email Brady Polansky at [email protected].
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EZLynx® develops industry-leading cloud-based software for the insurance industry. Our software has helped independent agents operate their businesses more effectively for over ten years.
EZLynx is proud to be the innovator of several products that previously the insurance industry had never seen, including: Real-time rating, Agency Pulse™, Policy Sync, eSignature integration, and a unified rating and management system.