Live chat rise and lost phone calls show digital tension in commercial lines

Brokers have urged insurers to focus on refining the final 10% of digital trading journeys in commercial lines, warning that minor system inefficiencies often cause outsized disruption in day-to-day operations.

Speaking during an Insurance Times webinar entitled Reaching the regions: Driving success through local broker-insurer relationships in UK commercial lines, held in association with Zurich, panellists emphasised that digital tools have improved operational efficiency, but there remains a significant gap between broker expectations and system reliability.

Mike Latham, chief executive at Verlingue, said: “What you will get [from digital tools] is appreciation for the efficiency that it creates.

“It probably works 90% of the time, but the angst of that 10% of the time it doesn’t creates, in terms of trying to find a solution around it, is disproportionate to the solution that it often provides.”

Such friction points can lead brokers to abandon digital platforms altogether for specific lines of business, reverting to more manual routes in search of quicker resolutions.

Digital reshaping

Morgan Lyons, head of SME trading at Zurich, noted that a growing preference for live chat has transformed how SME brokers interact with underwriters.

“Phone into our SME business was [previously] the primary communication method,” Lyons said.

“Now there seems to be a proliferation of move towards live chat. That is actually now the primary communication for us with our brokers in that SME environment.”

While Lyons acknowledged that this shift aligns with how many modern brokers prefer to work, others raised concerns that the growing reliance on chat and email harms long-term relationship-building.

Latham commented: “The art of the phone call is being lost somewhat. You’re not going to develop a relationship through live chat.

“When I’ve got a bit of an issue, I just want to pick up the phone to speak [to] somebody. Maybe that’s a generational thing for me.”

He continued: “More and more, people [are] moving away from phones to emails when they could really have a five-minute conversation.”

Lyons agreed that preferences may differ by generation, adding: “There is a generational difference. Perhaps people are more inclined to utilise the digital tools, like live chat, because that’s what they’re used to doing.”

Relationships remain essential

Despite the increased digitisation of commercial lines SME eTrading, webinar panellists agreed that continuity of personal contact remains critical for brokers – especially in regional markets, where long-standing relationships have historically underpinned trading.

Savan Shah, head of research at Insurance Times, added: “Many years have taken place where that relationship has been built and then, suddenly, someone has left or moved along.

“Having that proactive approach, rather than that reactive approach, is something that has proven successful for many of the insurers that performed really well in the commercial lines survey.”

The remarks followed Insurance Times’ Five Star Rating Report: Commercial Lines and Personal Lines 2024/25, highlighting that system usability and insurer responsiveness play a decisive role in broker satisfaction and retention.

As regional commercial markets grow in complexity, brokers are looking for digital platforms that reduce friction and support strong human connections in cases where underwriter guidance is still needed.