Taking into account the needs of your customer is the root of success for any business – but could insurance MGAs be missing the mark?
According to the results of a new survey, it seems less than 50% are offering a ‘modern customer experience.’
The survey was carried out in partnership between the MGAA and Aventus at the end of June, and revealed that 58% of MGAs do not have a single view of the customer through their IT platform – with 18% not knowing if they have or not. Meanwhile, only 17 of 64 MGAA members who completed the survey knew whether their customer data was in a format that provided commercially beneficial insight or intelligence for advanced decision making.
With investment in technology set to accelerate on the back of COVID-19, it was noted that only 26% of MGA IT platforms offer ratings based on real-time third-party data, while just 29% provide customer data for account-based cross-selling. This highlights a massive untapped opportunity for brokers.
“This survey proved to be a very interesting exercise,” said CEO and founder of Aventus, Peter Goodman. “Clearly while the majority of MGAs have made great strides to make better use of data, driven through technology, there is still a long way to go if more than half still don’t have a single view of the customer, or perhaps more worryingly ‘don’t know’ if they do. This should be a given starting point for delivering customers the modern buying experiences they have come to expect from other sectors like retail.
“If 90% believe that technology will accelerate recovery, and 60% believe customer insight driven technology investment will deliver the greatest rewards, then there is a clear understanding of the need to change, and MGAs have quickly come to the realisation that digital practices are a vital part of the insurance ecosystem.”
Other results showed that only 17% of MGAs had one single IT platform, 70% have multiple platforms (more than two) and more than half (52%) operate more than four platforms.
