Are Insurance Brokers Underserviced By Insurance Technology?

It’s not as simple as ‘Yes’ or ‘No’.

We have all felt frustration in the midst of processing our renewals list, conducting debtor follow up or applying an endorsement to a policy we placed with the underwriter over email. There has to be a better way!

It is very easy look at any long standing, well established platform in any industry and label it as ‘legacy’ and ‘outdated’ because it doesn’t do this or that, or because the screen is blue sometimes.

Blog article written by Luke De Laurence 11/2023. Opinions and views expressed within are his own and based on his own experience as an insurance broker, e-commerce manager and insurance software project leader.

Fortix business management software on desktop

The reality of the market is significantly more complicated

There is a reason many Insuretech solutions focus on select domestic product lines; they are comparatively modular and relatively simple.

They also offer a good bang for buck regarding efficiency; “spend less time processing high volume, lower income policies ”. That is a strong proposition.

These solutions have an important role to play in the market, pushing things forward and introducing new technology. Where the requirements of the Brokerage align with the problems being solved, it’s as valuable as gold dust.

However, there is a big consideration for Insurance Brokers to adopt solutions which don’t cover or consider the breadth of their operations:

Creating valuable efficiency relies on consistency of process, data storage and access

Investing in technology to handle low income, high volume or specific product sets may not be a worthy expenditure unless the brokerage has a well established, compartmentalised niche they can leverage.

If they operate outside of this niche the brokerage may be faced with the prospect of adding an insurance platform not replacing a platform, which can:

  • Complicate reporting and visibility
  • Split up client databases
  • Demand multiple sources of truth for renewal and claims processing
  • Multiply accounting and banking requirements
  • Increase steps in the compliance and auditing process

The outcome may be data entry efficiency gains are eliminated by significant efficiency loss in areas of the brokerage which require more specialised skills to resolve.

In other words; the easy jobs are easier but now the harder jobs are more complex.

Is changing platforms the answer?

When it comes to the more nuanced side of insurance broking practices, mitigating circumstances often demand a flexible approach.

Complexities arise from scenarios such as:

  • Hard to place risks
  • Co-Insurance
  • Multiple currencies
  • Wholesale agreements
  • Offshore entities
  • Schemes and binders
  • Sub agency arrangements
  • Split invoicing
  • Legislation changes

The established platforms play to their strengths and have developed robust insurance placement solutions integrated with their respective online marketplaces.

For the majority of brokerages, any alternative needs to be properly integrated with an established marketplace AND provide the ability to handle the complexity of traditional broking practices.

Breaking away from the traditional platforms in the hope of leveraging better technology, is accepting the best outcome may be simply a different set of inefficient processes.

How can Insurance brokers leverage the best of modern technology?

It’s not a case of upending everything in order to get ahead, or finding a magic bullet for success.

The existing platforms are the backbone of broking operations. For as long as these platforms handle the diverse and shifting requirements of the insurance industry, and the majority of insurers remain committed to the associated online marketplaces, they will remain so.

They do exactly what they need to do.

Leveraging the best of modern technology is a case of getting the right advice, working with the right people and utilising the right supporting systems for the businesses individual requirements.

For any given brokerage this might be:

  • Workflow process automation software
  • CRM platforms
  • Quote and bind facilities
  • Integrated form servers
  • AI, scripts or bot programs
  • Website and app development
  • Modern, managed IT services and digital infrastructure

…or a combination of everything above. Approaching business challenges from the perspective of ‘what could be improved today?’ then engaging with people to get it done is the first step.

If the feeling is ‘Yes’ you’re being underserviced, you probably are.

It doesn’t mean you have to be!

Got Questions?

We love to help. Ask us anything about our service, software automations, integrations, community involvement and more.

If Fortix is a great fit for you, that will be obvious. If we’re not, we may well know someone who is.

Our responsibility to you is to make sure you leave the interaction feeling more confident about the decision you’re making.