Brokers being ignored as insurers race towards technology and it’s eroding relationships, says MUM director
Brokers are being ignored by tech-hungry ‘faceless insurers’ who are making people relationships disappear.
That is the message from Manchester Underwriting Management director Richard Webb.
Webb told Insurance Times, in an Expert View, that insurers and brokers used to have a ‘people business’, but it is now at serious risk in the race towards technology solutions.
Although Webb agrees that ‘technology is the future’, he stresses that it doesn’t have to mean the disappearance of relationships.
“Most insurers have a portal that brokers or insureds can access and now we have InsurTech and AI.
“But as a result of the drive for online efficiency there is a human element that has started to disappear. The decision making underwriters, development managers or senior people who fix problems, make decisions and move relationships forward have started to disappear,” he said.
“Technology doesn’t (yet) allow you to solve problems that fall outside of the tick box,” Webb said.
”Who does a broker phone if they need to do a deal, tweak the cover offered or negotiate with an insurer? When there is a problem with a claim, who does the broker ring? Or does the insured go straight to the complaints section of the policy?”
He added: “Technology is the future, but it seems a shame that the people business should disappear so soon. It makes you wonder why a broker would recommend a client to insure with a faceless insurer.”
To read the full opinion click here.