How do brokers really feel about the trend for direct and digital?

The insurance industry, like most industries, faces a number of challenges in today’s business landscape. For brokers, many point to the trend for insurers to go direct, alongside the rise of digital technology, as the biggest obstacles to be overcome.

There are plenty of examples in the UK market of insurers both going direct, and utilising technology to do so: Aviva recently revealed a 10-year distribution deal with HSBC bank which will see the insurer’s home and travel insurance products become available via the bank’s online and mobile channels, as well as in branches and over the phone.

AXA’s UK CEO Amanda Blanc told Insurance Business earlier this month that while the insurer is committed to the “important channel” of brokers, it believes that there is a “really big opportunity” in the direct space. “We have to work with consumer demands, and consumers are saying that that’s what they want,” Blanc admitted.

But what do brokers really think about the challenges facing the profession?

“There is no doubt that digital enhancements and technology are beginning to change the way that the market operates,” David M. Dickson, head of technology, cyber & media at specialist cyber broker Safeonline, told Insurance Business.

But while technology can be considered a threat to the traditional way of doing business, the benefits it can provide are “staggering,” according to Dickson, “from enhancing the insurance transaction by personalising customer experience and interaction, to machine learning and predictive analytics to help automate and regulate underwriting, which will provide a more transparent pricing of risk.”

“Put simply, the technology advances are a huge benefit for customers, and this ‘threat’ will be an opportunity for brokers and underwriters who are able to adapt quickly, and exploit the opportunities that the emerging technology presents,” he commented.

Bob Darling, group CEO at regional broker Coversure, added: “Insurers are already going direct and, of course, the digital channel makes that easier for them. For brokers, it’s another competitor, and like every iteration in the market we will adapt and compete to offer customers a real choice.”


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