What does the future hold for brokers?

ins-relevance

After announcing their plan to expand into insurance, Amazon created a ripple effect amongst fellow aggregators earlier this year, causing shares to drop for UK price comparison sites by as much as 10%.

So, with the likes of Moneysupermarket.com, GoCompare, and Confused.com affected by this latest industry development, what could it mean for traditional brokers?

According to this year’s World Insurance Report, almost a third of consumers would purchase insurance from a ‘big tech’ firm like Amazon, which is a figure that has increased by 69% in the last three years.

These findings were reportedly driven by customer dissatisfaction, with only 36.1% of customers claiming to be highly satisfied with the ease of use of transactions in insurance, compared to 47.2% with banking.

 

The rise of self-service

Unlike in previous years, where only 16% of over 65s shopped online, the majority of consumers now feel confident to conduct business at a touch of a button, including over half of seniors.

Brokers play a key role matching customers with the right insurance policy and provider, but with the rise of aggregators, more and more consumers are turning to channels that allow them to compare and select cover for themselves.

As a recent survey uncovered, 67% of Brits prefer self-service functionality over talking to a company representative in-person or on the phone.

In line with this, the World Insurance Report found that more than half of those surveyed placed ‘high importance’ on the internet for insurance transactions, with 40% suggesting that the same applied for mobile apps and mobile optimisation.

Of this need for multiple customer touch-points, Norweigan firm – Sparebank – had this to say, “It is important to be relevant to the customer through timely engagement – it is not good enough to contact customers a week after the need is there or not at all.

Your customers’ journey with you does not end after purchase. To deliver exceptional service, and thereby increase the value from each relationship, it’s important that you’re able to demonstrate your full offering and effectively cross-sell your policies to the right decision-maker at the right time.

 

Commoditisation and your future

If done badly, it’s suggested that commoditisation may lead to clients making poor decisions. Yet the Future of Commercial Insurance Broking Report also recognises that technology empowers the consumer to “identify any additional exposures” and adjust cover accordingly.

So, the onus is on brokers to remain relevant by offering specialist knowledge and utilising technology to make that expertise accessible and prominent.

          

 

What’s your response going to be?

Customers expect insurance firms to use online channels to interact with them (47%), to allow them to manage their investments and policies (81%), and to provide them with an optimised customer experience (61%), yet many feel like those needs aren’t being met.

Whilst 47.5% of ‘tech-savvy customers’ are willing to receive personalised insurance offerings from brokers, that opportunity to cross-sell is missed due to a lack of ‘proactivity’ and customer insight.

Where brokers were considered proactive, and communicated their full proposition to their customers, those clients reported a 17-19% higher positive experience.

Self-service will always come with drawbacks, with many consumers leaving themselves exposed due to choosing unsuitable cover or not understanding their rights, which is why the broker-customer model remains relevant.

 

Will we see you there?

This September, we’ll be at Bluefin Network’s Forum, which provides brokers with the opportunity and means to take a step back and look at what the industry is doing in terms of acquisitions, development and marketing.

We’ll be releasing updates nearer the time, but if you’re looking to attend, we’d love to hear from you.

 

For more information…

To discuss the contents of this blog with our Marketing team, email us at charlottel@briefyourmarket.co.uk, or give us a call on 0344 800 84 24.

To download the World Insurance Report, click on this link.

Or for the Future of Commercial Insurance Broking Report, click here.

 

 

What's your strategy for winning more business?
Our BYM team, dedicated to your success
 

Comments

No comments made yet. Be the first to submit a comment
Already Registered? Login Here
Guest
Thursday, 13 December 2018

What does the future hold for brokers?

ins-relevance

After announcing their plan to expand into insurance, Amazon created a ripple effect amongst fellow aggregators earlier this year, causing shares to drop for UK price comparison sites by as much as 10%.

So, with the likes of Moneysupermarket.com, GoCompare, and Confused.com affected by this latest industry development, what could it mean for traditional brokers?

According to this year’s World Insurance Report, almost a third of consumers would purchase insurance from a ‘big tech’ firm like Amazon, which is a figure that has increased by 69% in the last three years.

These findings were reportedly driven by customer dissatisfaction, with only 36.1% of customers claiming to be highly satisfied with the ease of use of transactions in insurance, compared to 47.2% with banking.

 

The rise of self-service

Unlike in previous years, where only 16% of over 65s shopped online, the majority of consumers now feel confident to conduct business at a touch of a button, including over half of seniors.

Brokers play a key role matching customers with the right insurance policy and provider, but with the rise of aggregators, more and more consumers are turning to channels that allow them to compare and select cover for themselves.

As a recent survey uncovered, 67% of Brits prefer self-service functionality over talking to a company representative in-person or on the phone.

In line with this, the World Insurance Report found that more than half of those surveyed placed ‘high importance’ on the internet for insurance transactions, with 40% suggesting that the same applied for mobile apps and mobile optimisation.

Of this need for multiple customer touch-points, Norweigan firm – Sparebank – had this to say, “It is important to be relevant to the customer through timely engagement – it is not good enough to contact customers a week after the need is there or not at all.

Your customers’ journey with you does not end after purchase. To deliver exceptional service, and thereby increase the value from each relationship, it’s important that you’re able to demonstrate your full offering and effectively cross-sell your policies to the right decision-maker at the right time.

 

Commoditisation and your future

If done badly, it’s suggested that commoditisation may lead to clients making poor decisions. Yet the Future of Commercial Insurance Broking Report also recognises that technology empowers the consumer to “identify any additional exposures” and adjust cover accordingly.

So, the onus is on brokers to remain relevant by offering specialist knowledge and utilising technology to make that expertise accessible and prominent.

          

 

What’s your response going to be?

Customers expect insurance firms to use online channels to interact with them (47%), to allow them to manage their investments and policies (81%), and to provide them with an optimised customer experience (61%), yet many feel like those needs aren’t being met.

Whilst 47.5% of ‘tech-savvy customers’ are willing to receive personalised insurance offerings from brokers, that opportunity to cross-sell is missed due to a lack of ‘proactivity’ and customer insight.

Where brokers were considered proactive, and communicated their full proposition to their customers, those clients reported a 17-19% higher positive experience.

Self-service will always come with drawbacks, with many consumers leaving themselves exposed due to choosing unsuitable cover or not understanding their rights, which is why the broker-customer model remains relevant.

 

Will we see you there?

This September, we’ll be at Bluefin Network’s Forum, which provides brokers with the opportunity and means to take a step back and look at what the industry is doing in terms of acquisitions, development and marketing.

We’ll be releasing updates nearer the time, but if you’re looking to attend, we’d love to hear from you.

 

For more information…

To discuss the contents of this blog with our Marketing team, email us at charlottel@briefyourmarket.co.uk, or give us a call on 0344 800 84 24.

To download the World Insurance Report, click on this link.

Or for the Future of Commercial Insurance Broking Report, click here.

 

 

What's your strategy for winning more business?
Our BYM team, dedicated to your success
 

Comments

No comments made yet. Be the first to submit a comment
Already Registered? Login Here
Guest
Thursday, 13 December 2018
 
Book a free demonstration

Fill in your details and we'll get in touch at a time that's right for you.