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The tech toolbox: What do brokers need?

tech toolbox

Technology has improved in leaps and bounds over the past several years, yet what exactly do brokers need in their technological toolbox in order to succeed in today’s insurance climate? Eleanore Robinson reports

With a plethora of options on the market, from self-service insurance, to chatbots, to multi-policy covers, deciding which technological solutions are best for their business can be difficult for brokers. New software or tools are arising in every area of core operational broker management, from policy and claims systems to data enrichment.

So, what are the essentials that every broker should have in their technology toolbox to help both their staff and customers?

Data

Predictive analytics is key, according to Wrapper Insure managing director, John Garrard.

He said: “What data can we source and use to predict customer behaviour – this all helps increase revenue and improve loss ratios.

“This is also a way to significantly improve your customer experience and journeys.

“The more data you can source on an individual, the less questions they need to answer. Accuracy is improved and fraud is significantly reduced.”

“We are using predictive analytics and it makes a huge difference”, he added. “Our ability to write the risks we want based on our data profiles ensures we remain competitive and profitable.”

Telematics

Garrard added that telematics, which he described as “the smart watch for vehicles”, is also essential.

He explained: “Again, back to data, this enables insurers and brokers to underwrite based on facts.

“Usage, location, speed, accidents are all recorded and shared immediately. Not only can this improve revenue and loss ratio but it also encourages better driving habits.”

Paul Cunniff, chief financial officer at Freeway Insurance, said that communication tools including chat options and chatbots are becoming increasingly commonplace.

He said: “The whole world of artificial intelligence and augmented reality are items coming up quickly on most software houses roadmaps.

“Getting the right technological solutions, whether it be chatbots, live chat or other self-service options can be a great time-saver and, ultimately, save money.”

Clients

Cunniff added that Freeway focused on the customer when choosing which tools to use.

He said: “Giving the customer freedom to make the choices they want, using the communication method they prefer at a time that suits them, is key part to our technology roadmap.

“Allowing clients to chat, access portals and submit or retrieve document themselves, should be on the agenda for any broker in the insurance Industry.

Cunniff said that giving clients the tools to administer their policy, check their documents or assess progress with a claim in the palm of their hand was important in today’s world.

He said: “This again should be on the agenda for any technology strategy for brokers.”

Savings

Brokers are looking for solutions that can save them money, and time and be useful to their staff and customers, said Mark Rigby, chief executive of iRevolution.

For example, many brokers carry a lot of costs in the administration of policies, for example, document validation. Technology to make this process slicker would be hugely beneficial to many, he said.

Freeway Insurance is currently undertaking a significant digital transformation project.

Cunniff said: “If you take the client experience tools such as portals and chat bots, this reduces the inflow of calls and allows clients to immediately resolve their query.

“Take requesting a copy insurance certificate or copy documents, allowing a client to access their account online, saves that call from coming to our agents and allows the customer to have instant access to what they require.

“Support this with chat and the client can self-manage that query.”

He added that Freeway were early on in the journey with chatbots but do use agent chat to direct certain workflows.

“These technologies have been embraced by our clients and our team alike,” Cunniff added.

“These technologies are commonplace in all of our lives and are a must to offer a full suite of options to our client base.”

Chatbots

He continues: “Chatbots are also useful to resolve FAQ’s to signpost clients to simple resolution of queries. This can also be supported through educational news articles and website content.”

Chatbots are not removing the ability to speak to someone, it’s about enabling the customer to find the information they need when they need it, says Garrard.

He explained: “For Wrapper Insure, they solve around 80% of customer queries. We spent time ensuring we set up the chatbot well and are constantly making updates to improve the user journey and resolve queries.

“Of course, we are there on the end of a phone when a customer does want to speak to someone.”

While chatbots have their place in broking businesses, they are not a replacement for actual human interaction, added Rigby.

He said: “Like many in the retail world are finding, chatbots can help in specific circumstances to remove calls and emails to customer service agents.

“However, if a query is complicated, or a user is struggling, the option to speak to a human is always preferred to reduce customer frustration.”

Open-minded

Rigby added that, while brokers should be cautious of any changes they make to the process, including the adoption of technology to ensure there is no detriment to the customer, they should also keep their minds open to potential opportunities.

He said: “Carefully implementing the right technology could alleviate many of their staff or customers’ problems.

Could multi-cover policies be one of these opportunities, investing in software solutions to allow customers to sort out all their insurance needs in one place?

In an ideal world, a ‘one-stop shop’ would be great for customers but it could potentially be difficult to remain competitive and give client’s fair value, said Mark Rigby. “He explained: “You use one broker or insurer for your house and a different one for your car for a reason.”

Cunniff added: “Multi policy covers for brokers will all depend on the facilities they have in place and the risk appetite of the business and their insurance partners.

“It is common to see multi policy insurance offerings in the market, which would suggest brokers should have this on their radar.”

Concerns

Despite the prevalence of new technologies, brokers still have some reservations about adopting them.

Cost is possibly the biggest concern for many brokers, but for those that have the funds, time constraints and understanding of the benefits will be a limiting factor, said Rigby.

He added: “Software houses can help by becoming trusted partners, looking to assist brokers with resources and education pieces for their brokers.”

The perceived scale of implementing a technology project is another deterrent to brokers, added Cunniff.

He explained: “The key difficulty is the apparent size of any technology project. To change technology will have consequences on how you deal with clients, retraining your team and re assessing controls, reporting and risk appetite.

“Once the size of the project is understood, it is important to understand the realistic timetable for delivering that technological change.”

Cunniff added that software providers can support this by being honest and open about how long these projects can take, what challenges will be experienced and what resource will be required from the broker.

“Service levels, project plans and clear lines of responsibility are key to delivering a successful project, with a board or management team who understand the key steps and milestones towards delivering technological change”, he said.

“Software providers can add real value in this area. More time taken to plan and understand required outcomes, leads to a better-informed board, more understanding of issues along the way and with a responsibilities matrix understanding who is responsible for the fix.

“The answer to resolving these issues will always be through collaboration and not siloed responsibilities.”

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