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Mastering Digital Transformation for Insurance Brokers

David Thomas

As the world ushers in data collection across industries, the insurance world seeks to further leverage the data they’ve been collecting for years. Brokers can achieve this by embracing digitisation to become a full risk and service partner.

The insurance industry has always been seeped in data collection. Data on age and demographics. Data on household size and income. Data on weather-related disasters and the likelihood of workplace accidents.

What we haven’t mastered is how to use it to its full potential.

As the world becomes more and more reliant on digital technology, and industries from real estate to agribusiness seek higher levels of customer data collection, the insurance industry is seeking new ways to leverage their already data-rich systems.

For insurance brokers, leveraging data offers a whole host of benefits. It increases communication between you and your clients with easy access to their policy and claims data. It opens lines of communication with insurance carriers, allowing you to work together seamlessly. It automates processes that make it possible for your clients to notify claims online and on demand.

More importantly, it allows brokers to improve offerings and services. Many corporate clients expect their broker to be a full risk advisor in addition to being an insurance provider. The broker is uniquely positioned to provide insights for them, using their data, newly available and visible on the digital screen, to work to their advantage.


Benefits of digital transformation

The right technology gives brokers a competitive edge. When a wide array of data is available at the click of a button, administrative tasks are less demanding, and more time can be spent advising clients on the best way to handle a claim, positioning their renewal and giving guidance on managing risk.

A digital solution offers a broker the following benefits:  

  1. Collect complete and accurate data. Having accurate, complete data is critical when it comes to negotiating better policy terms and premiums. In fact, the entire insurance industry relies on complete and accurate data – and yet, with traditional methods of collection, the margin for error is enormous. Online digital tools can save time and simplify the process for both clients and brokers when submitting data. A program tailor-made for your organization not only flows seamlessly from your renewal process but also increases efficiency.

  2. Manage risk easily. A complete digital solution includes risk management aids, such as survey results, recommendations and completed audits. With this information at your fingertips, a broker can encourage clients to take proactive steps to improve their risk management . Not only does this reduce costs in the short term by decreasing the impact of losses, but it also cuts down in the long term, by making the organization a more attractive partner to the insurance company.

  3. Understand claim trends. Enhanced claims management stems logically from consolidating information. When necessary information is stored in multiple locations, it can be a challenge to understand the whole picture. When the information is available within a single system, however, it can be used to spot trends or other red flags that should be curtailed. Of course, knowing is only half the battle, but with access to the information comes the ability to take preventive action and reduce claim costs.

  4. Lower costs. The main driver of any digitization is efficiency. It’s easy to automate manual, repetitive processes in order to free up resources for other, more challenging areas of the business. But a broker who understands the new technologies and the benefits that come with them can actually make it easier for clients to interact with them and insurance providers. More specifically, the newly available information can lead to advice on concrete steps to take to improve a client’s risk profile.

  5. Improve safety. One overlooked aspect of a broker’s job is risk management for their corporate clients. Whether that means assisting clients with selecting and utilising appropriate safety software or using features in the online system to identify problems and trends, this is a critical component of the broker’s value to the client. In the end, safer workers not only mean fewer claims and better reports, but also lower premiums.

Digital Tools

Policy holders understand that technology is here to stay. In fact, they’re actively seeking out partners who understand insurtech and make good use of it, providing faster information to everyone involved so you can interact on-demand with them and improve their benefits all at the same time.

No two digital platforms are alike. If you’re considering a digital transformation solution for brokers, the most critical tools to look for include:

  • Data intake. Moving from manual forms to a digital option can be a challenging transition. That’s why it’s essential to look for a user friendly, intuitive interface, which often requires little to no training. Capture mobile intake tools to gather the data with ease to reduce error. The ability to analyze data on the fly is also a bonus.

  • Data repository. Cloud technology makes it possible to access data 24/7, from any device. This also leads to better reporting and simpler queries.

  • Integration of third-party data. Don’t limit the data to your own. Third-party feeds allow you to take external factors and existing data collection portals into account as well as the internal ones.

  • Advanced analytics. A picture is worth a thousand words – and it’s no different with data. Advanced analytics for risk and insurance allow brokers to present the data to both insureds and underwriters by way of visualisations to better understand what it means. This leads to better decision making all around.

  • Automation: Everyone is overloaded today. That’s why organizations are engaging robotics and AI for customer service – and the insurance industry is no exception. Doing so frees up your staff for higher-value tasks.

Next Steps

Don’t be left behind. As more and more insurance companies automate and digitise, your corporate clients will expect you to do the same. Clients will be looking for a broker who can not only sell them the right insurance policies, but also help them manage and keep track of their risks – digitally. For further information on this topic please contact David Thomas.




Mar 26, 2021

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