Administrative charges

The world of insurance distribution is going through moments of great turmoil with takeovers, mergers and splits.

Formulas with which the broker seeks to compete in the market, while focusing his efforts on managing administrative tasks that allow him to control his business.

New actors are appearing in the distribution, who focus their strategy on the commercial sphere, and see insurance as a way to diversify their business and expand their product portfolio. Given this, the brokerage will have to give priority to the reduction of administrative burdens as a necessary path for the release of administrative resources and its consequent reorientation towards commercial work and increased interaction with the client in order to increase the level of empathy and loyalty of this one.

The 2018 challenge: Reduction of administrative burdens

A very high percentage of the staff of the brokerages is assigned to administrative tasks with a high degree of dedication: load the portfolio of the month, control increases, supplements, returns, settlements, commission points, ... even tasks of pricing, retarification and hiring.

The broker must have functional systems that provide efficiency, reducing the administrative burden of their business, by means of which the information: is typed only once, the re-rating is done through 2 clicks from the existing information in the broker's software, replacement is automatically processed at the same time that the receipt is integrated, the documentation digitized on your site and the annotated accounting notes, as well as having systems of automatic and bi-directional exchange of receipts that cover practically all movements between broker and insurer.

The entry into force of the IDD or the new requirements in data protection will directly affect the broker. Looming times of much control and these demands can not be an administrative burden more, so it is essential the comprehensive support that technology offers.

Reorientation towards commercial work

The traditional broker will have to compete with the new players with very solid business models that focus their marketing strategy. The broker must adapt and focus his efforts to the commercial work if he intends to grow his business. Internet and the online sale of insurance were, until now, a closed space for large corporations, the insurance broker did not have the adequate technological capacity or economic resources that would allow online marketing.

The insurance technology providers will approach this opportunity for the broker and will equip him with tools, B2C components, that satisfy the demands of the clients with an insurance product adapted to the new realities and demands. The client will look for simplicity in the hiring and a better experience.

Interaction with the client

Before an omnichannel consumer, the current broker must have Business Apps that allow him to open an interaction window and provide instant conversations: video call, call, push messages, or a chat, becoming "your online broker", providing services of high added value in the form of exclusive utilities.

In short, in order for the broker to compete in the market of the future, it will be essential to rely on technology to tackle projects where the ultimate goal will be to build loyalty with your customer through a closer communication and contact. This can only be achieved by redirecting their efforts to the commercial area, which will be possible if the rest of the administrative tasks that reduce the commercial capacity are efficiently covered by integral management platforms of your business.

Nuria Alfaro
Commercial, Marketing and Communication Manager

Download full article