The Blog Spot: Time is money

Forgive me that I don’t know the source of this quote but I’ve seen it at conferences and always liked it: “Change has never been this fast before and will never be this slow again.”

It hits the nail on the head. Broking is changing and I’m pleased we will be continuing with our educational campaign throughout 2018.

For brokers the situation is all about mindset. Do you believe that InsurTech is an enabler or a disruptor? Something to grab as an opportunity or something to fear?

I don’t believe that brokers will suddenly face a cliff edge where all their accounts disappear to more technologically savvy competitors overnight.

But I do believe that those investing and preparing for the future are already chipping away at the livelihoods of those who are not.

Truth
The brutal truth is that brokers have to deliver in the way that clients want, when and how they demand it.

It is perhaps easiest to see the effects in the personal lines market but technology is also having a huge impact in commercial lines.

Having held our UK Broker Awards last month, and having read all the submissions, I know there is a lot to be positive about. There were numerous case studies of firms seeing and using InsurTech as an enabler.

These companies are using enriched data to bring a differentiated offering to the market.

They also see numerous new ways to communicate with current clients to deepen relationships and they spot ways to market themselves to potential new customers.

Data
I agree that more accurate data can deliver more comprehensive and more suitable coverage and data gathering will be enhanced as InsurTech improves.

Technology also allows for greater communication beyond say just renewals and claims. This brings more opportunities to educate clients about both the insurance they need and how they can manage risks to stop claims happening in the first place.

But I think there is more that can be done across the market.

Which brings me to the time is money point.

Time
So many new releases that we have written about when we cover InsurTech focus on saving time. And innovators are right to focus on this – customers want to save both money and time.

Now, I am not a Luddite, nor am I a tech whizz, but as InsurTech moves in this direction I believe the real challenge for brokers is to harness the power of technology – and deliver in a way customers want – while protecting the role of advice.

When technology is used properly it builds on the core traditional strengths of broking – the great service, strong relationships, knowledge and more – it does not replace them.

Just using it to “cut out the middle man” is the real danger.

Those case studies I mentioned earlier are already making sure that their business model adds value to the insurance client-broker-insurer chain.

If you aren’t already looking at that then you are right to be fearful. If you are then you should be hopeful of grabbing the opportunities that InsurTech is already bringing.

Further reading
Markerstudy’s Trice app available to whitelabel for brokers

Insurtech Futures: Biba launches claims app

Insurtech Futures: The rise of the machines