The technological advancements brought forth by insurtech will soon become routine for brokerage offices within the next few years. Digital-first approaches have finally trickled down, turning ripe for adoption for this major distribution channel. However, broker adoption has still not caught pace with their agency counterparts.
According to a 2019 report surveying independent insurance brokers across the US, Canada & the UK, the average for digital technology adoption at an independent brokerage is only around 43%, even though nearly 96% of them (almost universally) use a broker management system for indispensable day-to-day operations. Interestingly, over 80% don’t offer any form of ‘mobile apps’ or ‘self-service portals’ for customers or staff.
Today’s insurance customers are younger and prefer digital over traditional channels — leaving a lot of unmet gaps in the value chain. The report also identified key areas where adoption is growing — such as capabilities in workflow process management, document management, sales opportunities & prospect tracking, one system-one view visibility into all departments among others. For example, the downside to not outfitting your broker operation with employee mobility tools alone translates to over 30% reduction in staff productivity.