The Industry is Challenged
Processes are monotonous, mundane, redundant and trivial. They are replicative by their nature, often involving multiple parties in and for the same task. Systems do not communicate with one another in our typically three-party relationship; they are antiquated while processes are tired.
The overall cost of service delivery for the insurer is high due to the disconnect of systems used by insurers and brokers. Insurers only have human connections with their new and repeat business. Worse, insurers often receive zero feedback on why they win or lose accounts. Despite sending competitive or best-fit quotations, insurers have no visibility on their competitors’ position.
Underwriters are bound by time constraints from actuarial teams and traditional processes that are, themselves, quite manual and repetitive. Furthermore, there are little or no standardizations between parties. Connectivity between the insurer and the insured is limited by the capacity of the intermediary. Were insurers able to select from a broker’s pipeline, they could cherry pick opportunities that would streamline their own service delivery. Still, none of this is possible.
Brokers require time with their clients and prospects. The irony is, they are buried in paperwork with little time to do so. Current BMS platforms are reminiscent of DOS and Windows 95 systems. Workflow and processes are confined to the repetitive and the manual: invoicing, schedules, certificates, cover notes, reviewing, documentation and logging correspondence. What could be automated, routine tasks are performed by the most intelligent, technical brokers.
Current realities vacuum time and ensure lost opportunities for new and expanding business. Further, clients are exposed to increasing risks when insurance programs do not grow with them. Brokers’ incapacity to service clients effectively directly speaks to the attrition in their books.
For Broker Management, a predetermined measure of a book’s profitability is the measure of success, however, they maintain limited view of the actual activities performed inside the office. Management cannot validate if “busy” employees really are busy. Consequently, workloads are inconsistently split between employees and teams based on perception. Without being able to accurately measure the time spent on an account, we default to these predetermined measures to justify costs associated with servicing an account. In a time when the Insured seeks greater clarity and visibility, the broker is unable to meet these expectations for himself, never mind the customer, thus defaulting to the traditional mechanisms of the past.
In the age of the “Netflix” generation, insureds are demanding more. With personal and small business insurance commoditizing, the commercial insurance client today seeks greater transparency with respect to the value received for premiums paid. It is expected that the insurance industry catches up to the banking industry. Commercial insurance clients seek deeper interactions with brokers and insurers, and on their terms. There remains no mechanism to perform simple tasks on their insurance portfolio. Clients still cannot easily access insurance summaries and certificates, review active insurance policies or premium calculations, or view the status of their requests. In this “Fit Bit” world of ours, clients cannot access dashboards and reports on premium breakdowns or ongoing claims. Insureds expect to see a deep analysis of the behaviors effecting their account. Today, transparency, access, and self-service are not original. Still, client understanding of how their risks are being presented, represented, and serviced is unclear.