The future of the insurance broker is often deemed a point of concern, especially with the rise of technology, artificial intelligence (AI) and robotics.
As the capabilities of software programmes in personal and commercial lines continue to expand, many are questioning the role brokers will play in the future of the insurance industry.
But one major insurer says brokers have a “big role to play in the future”.
RSA Group runs roughly 70% of its business through the broker channel and the company continues to invest into that area despite some parts of the industry casting the future of the broker into doubt.
“Roughly 70% of our business is in the broker channel and about 70% of our business investment has gone into the broker channel,” said Martin Thompson, president and CEO of RSA Canada. “We believe that the broker channel has a big role to play in the future. A lot of our investment has gone into helping us make sure we are a good partner to our brokers so that we can serve them well and they can then do a good job for their customers.”
RSA Group has been investing in the broker channel in a number of ways. The Group has run a sales force effective programme to install better processes, discipline, diligence and communication among its broker sales force. It has also run a digital marketing campaign to improve communication and visibility among brokers.
Despite this investment into the broker channel, RSA Group CEO Stephen Hester remains pragmatic and says RSA must service customers the way they want to be served.
“At RSA Group we intend to service our customers in any way they want to be serviced. Some customers like going direct, so we have direct offerings in each of our markets. But many customers like the support of brokers,” Hester commented. “Of course, it varies by type of business. At RSA, roughly half of our businesses is commercial lines and that is almost all done through brokers given the greater sophistication and complexity of the coverage. In personal lines, more customers choose to go direct given the greater simplicity of the products.
“Our point of view is that we want to serve customers as well as we possibly can through whatever channel they want to do business through. We are proud to be partners with a number of thriving brokerages and we want to be better partners in the future.”
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