But Ageas Retail chief executive told the Insurance Times Broking in the Motor Revolution conference that brokers needed to invest in the right technology and knowledge
Brokers need to invest in technology to turn data into useful customer insight for insurers if they are to survive in the market and be successful, Ageas Retail and Distribution chief executive Mark Cliff said.
At the Insurance Times Broking In The Motor Revolution Event, Cliff spoke to brokers about the challenges and opportunities facing brokers in the personal lines and commercial motor market.
He said that brokers needed to invest in management information and data to remain competitive and cope with the changes in technology, distribution, customer needs and regulation.
But he added that brokers needed to invest in the right technology and expertise to be able to translate the data correctly.
Cliff said: “In my experience we don’t take enough time out to reflect on whether our customers insight is enough, how we refresh that or whether we are working on a customer template that is five years old.
“In the environment we live in five years is a long time. Two years can be out of date in terms of changing consumer behaviour.”
Cliff pointed to retail brands to highlight how they used their loyalty card information to create “unique” customer insight.
“We have to be thinking in the same way to retain our customers. But while there is a lot of talk around getting more data, including telematics – the sheer volume is mind blowing.
“With your business there has to be the capability to make sense of it, to use it to drive increased income and profit. Investing in that area is an absolutely no-brainer for the future of brokers.”
Cliff also gave examples of how using technology to mine data could help to improve the quality of a broker’s portfolio; ranging from tackling fraud at point of claim and quote to picking up extra premiums from customers who may not have included all the information.
“If we don’t [provide insight on our customers to our insurers] we have to question what value we add in the process,” he added.
“We have to invest in anti fraud initiatives to provide greater protection for insurers.”
Ageas is currently undergoing a major overhaul to simplify its retail business model, which includes seven legal entities, nine brands and six IT systems.
Cliff said: “By creating and having one system that enables our businesses to talk to each other - it removes operational inefficiency, but creates great opportunities for things like real time pricing, product innovation, quicker and a more friendly transaction.”