“We have to embrace these challenges together.”
With brokers supposed to act as agents for the insured and not the insurers, the relationship between the two can, on occasions, be strained. However, when it comes to new technologies it’s vital that the two work hand in hand.
That is the message from Kevin Roberts, broker and affinity director at Legal & General insurance. Speaking in an exclusive interview with Insurance Business UK, he described how technologies are both the most exciting new aspect of the industry and also its biggest challenge.
“In the insurance industry, we love data,” he said. “However, the question has become how we use that data.
“There’s no doubt technology is an opportunity – but right now the jury is out on how we use a lot of it. Brokers and insurers have to use their unique characteristics and embrace these challenges together. We have to start asking the questions and having the conversations.”
But why is the need for those conversations so pressing? According to Roberts, it’s absolutely clear that if insurers and brokers don’t start talking, others will.
“This technology is going to transform our businesses within one or two years,” he said. “If we don’t take advantage of these opportunities then you can bet other people will.
“Just look at the number of industries that the likes of Facebook, Amazon and Google have moved into. Any one of them could take advantage of these technologies and move into our industry with a massive advantage. So if we’re not doing something to disrupt the status quo then someone will disrupt it for us.”
So what can brokers do to bring these changes about?
“Brokers need to focus on their unique characteristics,” he said, “but also don’t be afraid of change.”
