The insurance industry is caught between automation and tradition. As digital-first insurers push AI and self-service, others double down on brokers, blending technology with human expertise.
The insurance industry is evolving rapidly as technology reshapes consumer expectations. Customers demand seamless digital experiences, pushing insurers to integrate AI and self-service options.
According to Deloitte’s 2024 Global Insurance Outlook, insurers are prioritizing digital portals and automation to enhance efficiency. Yet, the human element remains critical—many still rely on brokers for complex coverage needs. Can insurers balance technological innovation with the expertise and trust that brokers provide?
Tom Reikman (pictured), senior vice president and chief distribution officer at Definity, has spent over two decades navigating the industry’s digital transformation. Ensuring brokers remain competitive by equipping them with cutting-edge tools while preserving their role as trusted advisors.
Definity has embraced AI, cloud-based systems, and strategic partnerships to streamline broker operations without sidelining them. As automation accelerates, Reikman believes the future of insurance isn’t just digital—it’s a hybrid model where technology enhances, rather than replaces, human expertise.
Broker connectivity has always been a priority at Definity, a commitment that intensified with the company’s transition to cloud-based technology.
“Our personal lines system, which is built on the Guidewire platform, is called Vyne,” Reikman said. “We transitioned that system and that digital broker offering to the latest cloud-based technologies in 2022.”
This shift enhances real-time data access while eliminating inefficiencies.
“Connectivity is really at the center of that and really geared towards driving reduction or elimination of things like redundant data entry, data errors and really providing brokers the access to real-time information and one-and-done transactions,” he said.
Beyond technology, frontline broker education remains critical in navigating a highly regulated, rate-capped market.
“It’s a very heavily regulated, rate-capped, politicized environment,” he said. “To support customer conversations, you need to have as much information at hand as a broker as possible.”
Communication is another pillar of the strategy.
“Maintaining communication and really ensuring that the communication is crisp and clean, not only in terms of day-to-day communication, but also about communicating and relaying the quality of risks that you're looking for,” Reikman said.
A partnership with Google plays a pivotal role in data and analytics efforts.
“Our partnership with Google has allowed Definity to leverage Google Cloud and their innovative data, their analytics, and their AI solutions,” Reikman said. “As we continue to reimagine the insurance sector, these tools will play a key role in how we meet customer expectations.”
Definity is also making bold investments in broker networks.
“We believe very strongly in the broker channel,” Reikman said. “We've actually acquired equity positions within quite a few brokers across the country and we continue to partner with them.”
The company’s investment in McDougall Insurance, of which Definity acquired a majority stake in 2022, shows their commitment to strengthening broker relationships, and technology is central to Reikman’s vision.
“We really want to partner with ambitious brokers and brokerages that have a strong record of business success,” Reikman said. “The biggest value-adds for brokers going forward for both personal lines and commercial lines will be in the use of technology to make those processes easier and faster.”
Recent enhancements to the company’s SME (small to medium enterprise) Pathway platform are designed to improve efficiency. What once took days now happens in minutes, allowing brokers to focus on advising clients rather than waiting on underwriting responses.
“We recently just launched a new time-saving feature on the SME Pathway platform,” he said. “It allows brokers to generate premium estimates and provide coverage summaries for those SME clients in just a few minutes.”
Definity’s investment in AI and machine learning is reshaping its distribution model.
“Strategic investments that we've made in other areas include machine learning and AI,” Reikman said. “And that's in partnership with both Google and also Amazon Web Services.”
AI-driven tools are enhancing multiple facets of the business. These tools are also transforming broker interactions.
“The first is the ability to quickly implement pricing models which are powered by machine learning and allow us to really have flexible and adaptable rating depending on the market and depending on the line of business,” Reikman said. “Capturing client inquiries and utilizing AI to prioritize the importance or significance of the call, all the way through to summarizing conversations between brokers and underwriters, has significantly shortened the amount of time required to record and summarize interactions.”
Even as digital solutions expand, Reikman acknowledged that insurance buyers have varied preferences.
“It’s really dependent on the customer,” he said. “It’s not just necessarily age-dependent, it’s just really on how they want to complete a transaction and how quickly they want to get information.”
Self-service options are growing, but brokers remain integral to guiding customers through the complexities of insurance.
“They are really the specialists in terms of making sure that they have adequate coverage, getting the right price, making sure that the product addresses all of their potential risks,” Reikman said. “And then being able to complete that transaction rapidly and ensure that that client walks out of there knowing that they’re covered.”
