Other parts of this series:
- Brokers must quickly prepare themselves for a digital future
- Eight big technology trends that insurance brokers should understand before finalizing their business strategies
- Insurance brokers need to correctly realign their businesses with emerging technology trends
- Six powerful approaches to help brokers find the answers to tough questions about digital disruption
Selecting the right technology trends on which to build their business strategies is vital for insurance brokers. So is choosing the correct parts of the business to align with these trends.
To succeed in a rapidly changing market, brokers will have to build their businesses around some of the powerful technology trends that will shape the insurance industry in future.
Identifying these trends, and realigning their businesses to capitalize on them, is going to be difficult for many brokers. But it’s crucial. If they don’t, they’ll lose market share and miss out on new opportunities.
As I mentioned in my previous blog post, we’ve identified eight technology trends we believe will have a significant impact on insurance brokers. They are: The Internet of Me, Intelligent Enterprises, Intelligent Automation, Platform Economies, Predictable Disruption, Liquid Workforce, Digital Trust, and Business of Applications. The first five are primarily “Go Digital” trends that will define how companies can use emerging digital technologies to create new business opportunities. The remaining three are mainly “Be Digital” trends that will enable organizations to deliver digital solutions from their current technology platforms.
Brokers will have to accommodate both types of trends if they want to compete successfully in an increasingly multi-speed market. They’ll need to defend and enhance their current businesses, invest in new high-potential opportunities, and explore future objectives. Attracting and retaining skilled workers to support these different priorities will be a big challenge.
The “Go Digital” trends we’ve identified, illustrated below, will impact insurers across the whole value-chain. But brokers won’t be able to adapt to all of these trends. Nor will they be able to transform every part of their businesses to accommodate them.
Savvy brokers should back the technology trends that are going to give them the most leverage in their future markets. They must also be clear about which business functions they’re going to align with these trends. Furthermore, they need to carefully prioritize the trends they wish to pursue and the business components they intend transforming.
As shown in the above illustration, broker activities such as prospecting and customer acquisition, risk identification, customer placement, and customer engagement and advice risk being disintermediated as carriers increasingly serve their customers directly. Backing technology trends such as the Intelligent Enterprise and Intelligent Automation would help brokers to bolster their core strengths and mitigate such risks. Furthermore, brokers could greatly enhance their businesses by applying some of these emerging technology trends to improve their risk funding practices and upgrade their customer resolution and pay-out systems.
Brokers looking to devise a strategy that will equip their businesses to compete successfully in the emerging digital economy must ensure they select the correct technology trends to adopt and identify the best areas of the business to align with these trends. This is vital. Wrong choices could seriously harm their businesses.
In my next blog post, I’ll discuss some selection processes that will help brokers make smart choices about their digital strategies. Until then, take a look at these links. I think you’ll find them helpful.
The Broker of the Future: Winning in a Disruptive Environment
Brokers of the future are digitally sophisticated, able to deliver transparency, strategic risk advice and control for today’s customers.