Brokers need to focus on creating value for clients and enhace what they bring to the table for clients, an expert has said.
Carol Barton, president of AIG Multinational, said that if brokers do not hone in on creating value, then they will struggle to remain relevant in a changing industry.
“If you are not focused on creating value, you are going to be out of the equation,” Barton told
Insurance Business.
“We have to drive efficiency and we have to drive value… I think they (brokers) will continue to try to enhance the capabilities they bring to the table.”
It is not just brokers that face a changing role as Barton noted that the role of the underwriter is changing and will continue to evolve.
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For underwriters, Barton said that the availability of data and the ability to better analyse this data will see the job role change.
While many may see the prevalence of data and the increase in the use of technology as a way of moving away from a hands-on underwriting approach, Barton disagrees.
“I think a lot of times underwriters have been stuck at the desk, sort of filling in a lot of administrative work and I think, again, technology can make that much more about judgement and decision-making and much less about punching in data and crunching numbers,” Barton continued.
Both brokers and underwriters will need to focus their business on helping clients avoid claims as well as ensuring that a client is adequately covered by insurance.
More businesses across industry will see value created by avoiding losses in all lines of business.
For insurers, the future will see a bigger role for data too.
Barton said that it will be vital for insurers to learn from client losses and use one claim to help others avoid similar pitfalls.
“To me, insurance carriers have that ability to share knowledge and understanding. I think more and more with technology, we will be able to do a better job with that,” Barton continued.
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