Broker understanding and adoption of technology in Canada is on the rise – but the digital bandwagon is still very much at the start of a long journey.
Despite significant progress, 11% of Canadian brokers still don’t operate a website, and of the 89% that have moved online, only 54% run a mobile-optimized website, according to research by the Center for Study of Insurance Operations (CSIO).
These stats are slightly concerning in a world where digital delivery and communication is a basic expectation for many consumers, said CSIO president and CEO, Catherine Smola. But there are lots of simple, cost-effective tools that can help brokers enter the digital realm without any technical torments.
“Brokers looking to digitize their business should start small. Don’t grab at everything and try to implement a total digital solution all at once,” Smola told Insurance Business. “My three key recommendations to brokers would be to ensure they’re using a secure email protocol, ensure their website is mobile-optimized and look at integrating an e-signature solution.
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“Artificial intelligence (AI) and chatbots are the in-thing at the moment, but brokers should make sure they’ve got the basics in place first. Sometimes brokers get fixated with upcoming, innovative technology, when there are lots of products already available that have been tried and tested, are inexpensive, and could really improve the customer experience.”
E-signature software is one such inexpensive tool that works well for brokers of all sizes. For as little as $15 per user per month, brokers can use this tool to increase efficiency, save time on applications and create the impression of a digital, sophisticated customer experience. However, currently only 10% of Canadian brokers are utilizing e-signature software, according to CSIO research.
eDocs are now standard across Canada, allowing brokers and carriers to exchange digital policy documents in a quick and efficient manner. To complement eDocs, CSIO is in the process of developing an industry-wide solution to deliver digital policy documents to consumers, including proof of auto insurance (eSlips). Developed in collaboration with member carriers and brokers, the solution will be made available to CSIO members at no additional charge.
Rather than develop an insurance app – which only 4% of Canadians choose to download – the CSIO solution uses email and secure mobile digital wallet technology common to Apple, Android and Windows smartphones. Digital wallets are widely used by banks and are seen as a mature and trusted solution to store eSlips, according to Smola.
Security is another important aspect of digital broker operations, especially in light of recent global cyberattacks and data breaches. Using the Transport Layer Security (TLS) secure email protocol is “very inexpensive” to implement and is a “very prudent” strategy, Smola said.
“Adopting simple technology like CSIO’s digital document solution would benefit brokers and consumers. It’s a win-win,” she added. Release of the solution is anticipated by early 2018.
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