It’s no longer enough to be a simple intermediary – today’s insurance broker has to fulfil several other roles, too
In their quest to add value to their customers, today’s insurance brokers are donning a growing number of hats.
But, with countless new hoops in which these brokers have to adapt to, whether regulatory or the increased demand put upon them by insurers and customers, what does today’s modern broker look like and what will it look like in the future?
Consolidation has had a major effect on the broking space, with the overall number of UK insurance broking firms shrinking – current numbers are around 3,500, according to Biba – and the largest entities getting larger.
Regulatory factors and the rise of new business models have also had a major impact, increasing the pressure on brokers to innovate and provide fresh products and product wordings.
So how are brokers adapting? Applied Systems executive vice president of customer experience Kristen Hackney said: “We see some hesitance but will also see many brokers starting to see the importance of becoming digital and trying to understand how technology will affect their business.
“They are aware that their customers are looking for faster and more convenient services, and therefore they need to automate to remain competitive.
“It’s no longer enough to be a simple intermediary – today’s insurance broker has to fulfil several other roles, too consumers expect service as well as speed automate to remain competitive.”