Smaller brokers using new technology stand to benefit over larger firms
Brokers who fail to embrace technology will fall behind, but small brokers who develop technological advances will move forward, a new report has highlighted.
Technology consultancy, Pancentric, reveals in its study E-marketing: dispelling the myths that a new breed of smaller brokers are able to "punch above their weight" because technology has given them equality with larger operators.
Therefore smaller brokers are able to deal with larger, more complex risks and they no longer need large offices with expensive overheads to climb the ladder of success.
Twenty-three per cent of smaller brokers surveyed highlighted technology as a crucial way of expanding their business, but 38% of the same group said they had no intention of embracing technology.
James Prebble, marketing planner at Pancentric, said: "A new breed of smaller broker is emerging who use technology but there are also those who refuse to adopt technology and they will be the ones who will struggle."
This development is breaking down the traditional divide on the broker high street, with those using technology in the competitive driving seat.
The unwillingness to accept the opportunities offered by technology appears to be age related.
The report finds brokers with younger teams tend to be more aware of the benefits of technology and are aware that the cost of making technological changes should not always be problematic.
For the first time, brokers who use technology have an opportunity to change from being reactive in terms of customer demands to becoming proactive in seeking out new areas of business, predicts the report.
The report reveals that the majority of smaller brokers do have a website, but far fewer than half use it for online quotes.
But 25% of smaller brokers surveyed say they will increase their spend on email marketing within the next year.