It’s time for your brokerage to harness the technology revolution

The desktop computer and Internet revolutionised the way we conducted business. These technologies made it possible to create and store reams of data and connect to it from anywhere in the world. To appreciate the impact of technology on the insurance sector you need only consider how your brokerage operated two decades ago versus today.

Back then you relied on face-to-face meetings, facsimile transmissions and telephone calls to service your clients. The turnaround time for new business was impacted by delays in communicating back and forth. You relied on printed newsletters distributed through the postal system to update clients on market outlooks and business strategy. And your valuable client information and lead generation ideas were typically hidden in paper files, kept under lock and key. Your clients waited weeks before a "first look” at their policy documents!

Today things are different. Although the telephone still features in most business interactions the majority of client communication is by email or instant message. You disseminate information to your clients online and in real time using a combination of website, bulk emails and social media outlets. Interaction between your brokerage and the insurer evolved to include instant data sharing between their servers and yours. Today you can reach anyone, anywhere, anytime with a couple of mouse clicks!

The printed policy document still exists, but clients don’t have to wait for the postman to deliver it. Instead they print out the PDF document the insurer emails to them. A 21st Century insurance brokerage hunts for leads using carefully tailored Internet strategies, mines its client data with the assistance of "state of the art” customer resource management (CRM) software, and quotes its clients in real-time using custom-made online quotation platforms.

The process of writing new business – from lead to initiating insurance cover – is simpler, faster and more efficient than ever before! Aside from bespoke Information Technology systems brokers can rely on fantastic hand-held technologies too.

The days of being office bound are over thanks to huge advances in portable computing and wireless communications. One of the biggest mindset changes for large corporations will be the migration of data to the so-called cloud. Cloud computing – or moving from company-specific server racks to Internet-based application and data servers – will radically alter the way we handle and store data. Of course, you will hardly notice this change.

You will go about business as usual, but without the need for a cumbersome laptop! Thanks to "smart phone” technology today’s insurance broker is connected to both the brokerage and the insurer 24/7. In their Outlook 2020 technology research company Forrester estimates there will be 22 billion connected devices world wide – and that each of us will hold, in our hand, the computing power of a 2010 Super Computer.

This trend is already evident at the numerous industry functions and presentation we attend. Cast your eyes around the audience and you will notice dozens of attendees tapping away at tablet devices (such as the Apple iPad and Samsung Galaxy Tab) or browsing the web on their smart phones.

The computing power of these devices is hardly relevant. Because today – with existing technology – you can already use an Internet enabled device to accomplish any task you previously performed on the office desktop. You can send and receive emails, compile and generate reports, or quote and write new business without any trouble at all. Examples of new technology in action are all around us…

Take the process of assessing a client’s motor vehicle upon policy inception. In the old days the customer would go to a claims assessment centre where a form was laboriously completed – faxed to the insurer – and captured on that side. Nowadays the assessor simply walks around your vehicle with a tablet – inputs the policy number – and completes the inspection in real-time, online. The information is immediately updated on the insurer’s server and the possibility of data capturing errors reduced by half!

Or consider the telematics data making inroads in the short-term motor space. An insure now has more data on the client’s driving behaviour than ever before, monitored in real time and available at the click of a button. This enables more accurate pricing and improved claims resolution while at the same time reducing fraud!

There is no question that technology is a critical cog in the machine of both insurer and broker. To remain relevant as a broker you have to offer your client a service on par with today’s Internet aggregators and direct insurers. You must, therefore, demand from your insurer and third party providers a highly responsive solution to your (and your client’s) data and communication needs.

As technology marches on your clients will demand real-time quotations and immediate cover. From your perspective having instant quoting capability is thus a fantastic asset. And technology provides solutions to your compliance problems too. You can, for example, incorporate voice recordings and other client communications in your data management solutions. There are even solutions that facilitate the compliance function in unfamiliar business areas.

The industry is cognisant of the requirement for smoother data sharing. A recent result is the implementation of the STRIDE data project as a joint initiative by the South African Insurance Association (SAIA) and the Financial Intermediaries Association (FIA). The have spotted an opportunity to improve the seamless integration of client data between all industry stakeholders. By enabling seamless data transfer they will speed up the use of technology in the short-term insurance space!

In the following pages we take a look at some of the technology-based solutions available to short-term insurance brokers and financial advisors.

Take a closer look to discover how you can leverage technology to provide an enhanced service offering.