A leading provider of insurance software and technology systems has reassured brokers about their irreplaceable role in the value chain, saying the profession is undoubtedly here to stay.
“Our view is there will always be a need for brokers, at least for the foreseeable future,” said Robert Lang, a corporate account manager at SSP Worldwide.
“However, there is a potential that certain classes of business, traditionally serviced through the broker channel, will reduce as increasingly tech-aware businesses become more comfortable dealing direct with insurance producers,” he added
Lang’s comments come after he published an article discussing the rise of insurtech in Australia and said the nation could easily find itself as the centre of a burgeoning industry.
“Australia could soon be the new home for insurtech,” he said. ‘This is primarily evidenced by the number of local insurtechs launching in this market, as well as various industry events and initiatives.”
When asked about the impact this is likely to have on brokers, Lang said they will be forced to adapt – just like everyone else.
“Technology has and will continue to transform the entire insurance value chain, and all players including brokers will need to embrace new technologies to ensure they remain relevant,” he told Insurance Business. “New insurtech entrants will attack profitable segments that enjoy healthy margins first, so from a broker perspective adopting technological change relating to customer engagement and experience will be particularly important, as this is ultimately the value proposition of a broker.”
Adopting tech advancements, he says, will assist all businesses through more efficient back office processes, as well as critically enhancing the end customer experience.
“Leveraging tech around customer engagement and experience in terms of the advice provided by brokers to customers through new and enhanced technologies will ensure that brokers remain a relevant and trusted source of business,” he said.