As the Insurance market undergoes rapid and systemic change, driven by changing customer behaviours, regulation, carrier strategy, new Insurance entrants, and technology innovation, this has led to the re-examination and the progressive re-invention of the Insurance Brokerage firm’s business.
The ‘middle-man’ Broker role is being continually marginalised by the growing trend for customers to buy directly and to increasingly package their requirements – undermining the very premise of the Brokerage business, linking a customer to a carrier. As firms get squeezed the challenge is how to create added value in the services provided to clients, and to better differentiate offerings from other Brokers in the marketplace.
These challenges are further compounded by the uncertainty of Brexit, skills shortages, increasing specialism of firms, commoditisation, and the rapid growth of Artificial Intelligence (AI) and automation. It is clear that the current highly competitive and highly price sensitive market is going to remain for the foreseeable future.
The big 3 global Brokers’ (Aon, Marsh & McLennan, WillisTowersWatson) approach to addressing the challenge has seen them focus on building scale in key markets (partially through acquisition), focusing on deepening client relationships, providing added-value services including Risk and HR Consulting, and developing new technologies to improve the customer experience.
Going forward, Organisational Change and the Operating Model are going to become an increasing part of the conversation as Brokers demonstrate their unquestioned ability to adapt and evolve. There will be an increasing focus on reducing servicing costs and using technology and automation to drive improvements in efficiency and the customer experience.
At Hillbrooke, we help Insurance Brokers, big and small, to meet the challenges of today’s changing market dynamics. This has been through a range of initiatives, from supporting the simplification and standardisation of operational processes, implementation of robotics (RPA), through to supporting the establishment of regional and global Shared Services hubs, and advising on the Outsourcing of non-value adding middle and back office administration. However you are looking to transform. Talk to us.