F rom its very earliest days, the insurance profession has always evolved and changed, adapting to the needs of the market and the effects of various forms of disruption. Today, that disruption is coming firmly from technology and Artificial Intelligence (AI), and together they present significant opportunities for brokers that want to seize them. Richard Klipin, Chief Executive Officer of NIBA, says, “Brokers have a huge opportunity at this precise moment in time to create business models and service models that are going to be relevant and successful in 10 years’ time.” “Tech and AI are already changing the way we all work, and the reality today is that the brokers who are going to be successful over the coming decade are the ones who seize the opportunities in front of them, and work out how technology can complement the human side of the business, and where, as individuals, they can deliver the maximum benefit for clients.” NIBA recently conducted research into the key challenges facing brokers over the next 10 years. The subsequent report, Ready or Reacting: Shaping the Future of the Broking Profession , found that technology and automation ranked as the factor that would have the second largest impact on the profession, with increased regulation the only factor to be rated as having a bigger effect. When brokers were asked to rate their preparedness for dealing with the impact of technology and disruption, 61% believed they were ready – meaning there’s a lot of work to be done. How technology and AI will impact brokers Technology and AI can add serious strength to the day-to- day – ultimately freeing up time for brokers to spend with clients.
Repetitive tasks can be automated, data entry streamlined, routine and straightforward claims can be lodged quickly, while communications can be hyper-personalised to keep your clients informed and engaged. Fast, slick digital experiences are the expectation today, as is 24/7 availability. Many data entry and administrative tasks will become redundant – while AI tools can run basic policy comparisons in seconds. Embracing digital technology and being a digital-first operator is now a non-negotiable, says Andy Doran, General Manager, Commercial Underwriting, at Allianz. “Brokers will always be risk advisers, and add huge value from that perspective, however now from a technology point of view they’ve got to be digital natives.
“Brokers have a huge opportunity at this precise moment in time to create business models and service models that are going to be relevant and successful in 10 years’ time.”
“The challenge is how do you stand out in the marketplace, because if everyone is offering similar processes and it’s standardised, what are you doing to prove people should be using you – which is where that face-to-face advice and expertise comes in. “Brokers need to have those day-to-day things happening automatically in the background so they’re up to speed as to where the opportunities and where the risks might emerge – not today, but tomorrow, because the world is changing at 100 miles per hour, and brokers have an evermore important role to play to keep clients up-to-date and informed.” The notion of being that ‘strategic adviser’ has been talked about for a number of years now, however, NIBA’s Ready or Reacting: Shaping the Future of the Broking Profession research highlights a significant issue – because while 77% of respondents believed it would have a significant impact on the profession, just over half – 55% – believe they are prepared to embrace that role. “With the increasing use of technology, and more simple risks automated and being very low touch point, the broker’s role is moving very quickly to one that will be very much a strategic adviser,” says Klipin. “We want brokers to have confidence in the value they bring, and truly be seen alongside accountants, lawyers, and other professionals as essential parts of every business’s armoury.”
A NIBA Brokers’ Guide: to leveraging technology in insurance 45
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