The insurance industry has been going through something of a revolution. Insurtech – the innovation of technology to support the evolution of insurance products and services – has become one of the most exciting areas of development, pushing many tech boundaries at the cutting edge. Interestingly, it’s often the smaller insurance brokers who are proving to be the early adopters of this kind of technology, using Insurtech to make changes that deliver improvements across the board.
Smaller brokers + Insurtech
There is a common misconception that smaller insurance brokers are not early adopters and don’t generally understand tech. As a result, cutting edge developments are often aimed more at big businesses with huge budgets and extensive human resources.
However, this overlooks the fact that innovative technology such as Insurtech is ideal for smaller, more agile enterprises looking for tools that enable them to do more without necessarily increasing budgets or staff. This is something that has proven true with the recent arrival of Insurtech UK, which launched in November 2018 and saw significant – and unexpected – sign up to its platform from businesses at the smaller end of the market.
How can smaller insurance brokers make changes with Insurtech?
Finding the right solutions for an individual business is key
Investing in Insurtech needs to be specific, identifying solutions that meet individual needs or problems for the broker, as opposed to a one size fits all approach or just jumping on the latest bandwagon.
Insurtech is country specific
While it’s possible to look at markets like the US to find inspiration, it’s important not to get hung up on other jurisdictions. This is especially so because the Insurtech market in the UK is much more mature than in other locations. Insurtech products that work for UK insurance brokers will be specific to the local market.
How is Insurtech likely to change the market?
There are many different ways in which Insurtech could impact on the insurance market. Just like the Fintech revolution has turned finance on its head, Insurtech could well do the same for insurance. A recent study by Ernst & Young found that 24% of those who responded to a survey globally had already adopted Insurtech – in the UK specifically the figure is 43%. These are just some of the ways in which Insurtech can enable change that is particular beneficial to smaller brokers:
A more customer-centric approach to service
The insurance industry has often been accused of lacking customer focus but Insurtech makes this simpler and easier to achieve.
More competitive pricing
Features such as automation allow processes to be streamlined so that pricing can be made more efficient to enable smaller businesses to compete.
Meeting the evolving needs of customers
Consumers today are more tech-savvy, knowledgeable and looking for individually customised solutions. Insurtech has an essential role to play in enabling smaller industry players to keep up.
There are key advantages for smaller insurance brokers in investing in Insurtech, which could have a real transformative impact on this end of the market.
Get in touch with Mandon Software today for all your insurance software needs.