Let's face it – the past year has brought significant changes in how we interact and work in many ways. Most industries, the insurance sector included, are under a lot of pressure to modernize.
The pandemic has accelerated innovation and highlighted the need for digital transformation, and the way the insurance sector functions is going to be subject to radical and permanent change.
The big question? What will the broker of the future look like?
While other insurance lines have seen radical changes to their distribution models, brokers are, and will remain, the key driver of commercial insurance. Insurtech is not a threat, but an enabler, and the winners of the insurtech revolution will be the brokerages that leverage new technologies to amplify what they do best: support their clients.
In recent years, the insurtech sector has received significant funding and seen new players pop up faster than any of us can keep track of. Most insurance companies are already embracing technology to sell their products. Accelerated underwriting and digital distribution are powerful digital capacities, which many insurers are focused on to win over digital-forward customers.
Whereas the shift to digital insurance platforms feels like it is long overdue, it raises significant questions and concerns. The most obvious concern is the impact that insurtechs will have on brokers and how they do their jobs.
With significant changes witnessed within the insurance sector, there is no doubt that the commercial insurance is shifting towards the use of digital platforms in procuring their products. Moreover, most businesses and individuals now have incredibly high expectations for faster service, especially when it comes to providing customers the most appropriate products faster.
Insurance brokers sometimes fear that insurtech presents a threat to their mode of operation. Given that digital adoption isn't a matter of age anymore, modern customers have the capacity and knowledge to carry out research and procure insurance online without brokers' help.
While this trend has been powerful in health and personal lines, property and casualty insurance hasn't seen as much change due to the complexities of it all. Despite this, customers are looking for a similarly smooth and efficient process.
Despite the anticipated shift to digital, brokers will remain a vital part of the commercial insurance process. Their role in helping customers choose the best policy while providing them understanding and security is invaluable; especially in these uncertain times.
Brokers offer their customers peace of mind, and that human element is key. Thus, the need to be more consultative and personal will continue to be a driver for successful brokerages.
Many commercial insurers express being confused or concerned by the impact of insurtech on their industry and their jobs. Given the essential human element to commercial insurance, it is important to note that insurtech isn't about replacing brokers, but creating a better and more efficient model.
Insurtechs will increase the efficiency of the commercial insurance process as a whole. These innovations will help you bind quotes faster, win more business and find better premiums for your clients.
Brokers have long looked for ways to free up more time to provide personal touches and win more business. Along almost every stage of the value pipeline, there are insurtechs developing diverse and thoughtful solutions that will make brokers' work more efficient.
The process of procuring commercial coverage is involved and time-consuming. With modern systems and solutions designed to improve the process as a whole, brokers will have more time to take a consultative approach to their client relationships. When you can spend less time filling out forms and gathering quotes, you can spend more time winning new business and helping your clients understand their risk.
The result? Revenue growth and happier clients.
Despite the unknowns of what the future of the industry holds, we can be confident in one thing: brokers are the essential driver of commercial insurance.
Brokers have a unique chance to evolve within a digital-forward market, and those who use new technology to enhance what makes them unique will emerge as the winners.
Let's get in touch and talk about how we can help make that happen.