An expert has warned brokers that if they continue to ignore changes in technology, they will fail in the future.
Dale Smith, CEO of business software firm Javln, said that while relationships will still be important for intermediaries, the industry needs to offer more.
Search and compare insurance product listings for Information Technology from specialty market providers here
“It is now or never for them,” Smith told Insurance Business. “People buy off people but in order to keep those people as clients they are going to need to offer more than a great relationship, you need to be able to offer a great relationship and all the tools that they want to enable them to interact with the insurance business.”
Smith said that as new generations emerge, these issues will become even greater for the intermediated insurance industry.
“A strong relationship will hold you in good stead for a very long time but as our population gets older, Gen Y and Millennials come through, the first thing they want is access to a digital platform that they can buy insurance off,” Smith said. “The relationship will absolutely be second.
“There will be two sorts of brokers; the ones that embrace technology and use it for all the things that are available or the ones that will rest on their laurels and they will fail left, right and centre.”
Smith highlighted the rise of accounting software Xero as a case in point for change in the financial services industry and stressed that brokers and agents need to remain open to the opportunities new technology can bring.
“The ones that are forward-thinking and embrace the technology and combine the strength of a great relationship that they have with their client and fantastic technology, will just be leap years ahead of any competition,” Smith said.
Brokers should start by looking at their digital footprint as they look to utilise technology that is already available for their business.
While much has been made about disruption in the industry, both at home and abroad, Smith said that is time for the industry to walk the walk on the issue.
“Brokers absolutely need to be believers in the fact that technology is going to change their business,” Smith continued. “New technology is coming. It is either embrace it and live and breathe and survive and go well… or fail.”
Related stories:
Is advanced technology leading to cheaper insurance?
Can insurance intermediaries learn from Apple?
