We use cookies to improve this site and enable full functionality. You can change your cookie settings at any time using your browser. Our cookie policy.

Brokers: Your customers are now demanding technology

Brokers: Your customers are now demanding technology | Insurance Business

Brokers: Your customers are now demanding technology
Offering new technologies to clients, such as mobile apps, is no longer a far-off consideration for brokers – customers are now demanding it.

The average consumer now has smartphone technology in their pocket at almost all times: studies suggest there are at least 700 million iPhones in use worldwide. Consumers now want to communicate via mobile, and those brokers that invest in the technology stand to gain a significant competitive edge, according to Applied Systems.

“The changing consumer expectation is the number one reason for brokers to adopt new technologies – being able to satisfy that desire to do more with mobile and through technology. We see that consumer demand really having an effect on businesses in other industries,” Joe Sultana, managing director of broker solutions at the technology provider, told Insurance Business.

While a wave of insurtechs are entering the space and attracting high levels of investment, by utilising technology brokers can gain an edge even on these new players, Sultana said.

“The proposition a broker is able to offer to their customer if they invest in technology is second to none. Many of the new start-ups are technology-led, but they don’t have the infrastructure, knowledge, and expertise that many brokers do,” the MD explained.

“Technology helps with efficiency, it helps with service, it’s about meeting the consumer demand to use these devices, and giving policyholders choice in how they would like to be serviced,” he went on to say.

Applied Systems’ offering includes a consumer-facing mobile app which brokers can tailor using their own branding, and is downloadable to customers straight from the Apple App Store or Android’s Apps on Google Play.

“Brokers tell us that when they are talking to their customers, either existing or prospective, this is setting them apart from other brokers,” Sultana said of the offering.

“We have seen across all regions that when brokers invest in this type of technology, and they provide it to their customers, the customer uptake and the number of transactions per customer goes off the scale. We are seeing a real positive trend of customers utilising these technologies when the broker does invest,” he commented.

Despite that, Sultana admitted that the penetration of brokers using mobile apps across all markets is “still not where it should be.”
“Brokers do a good job of looking after their customers and servicing their insurance needs, but they are not technology companies,” the MD said.

However, brokers are increasingly investing: “Over time, more and more brokers will invest in technology, but I think if you’re at the forefront of this type of technology and are investing with the right partner, then it is only good news for your business moving forward.”


Related stories:
Brexit, technology fuelling changes in construction industry, says Zurich
LexisNexis Risk Solutions MD: The insurance industry’s biggest disruptor