There is a misconception in some quarters that the rapid advance of data analysis and automation will take away the human touch and accelerate the depersonalisation of insurance. To put it bluntly, the reality is the exact opposite – data, data analytics, automation and even Artificial Intelligence, when used correctly, bring greater insight and understanding of customers and create stronger, more personalised relationships.

Data is after all just information which can be analysed to provide deeper understanding. The more relevant data a broker can access, interpret, and analyse, the more insight on individual customers is possible. And of course, the more the “legwork” around servicing customers can be removed from a broker’s day to day responsibilities, the more their time can be spent cementing relationships, listening, learning, and developing a real understanding of customers’ different needs and risk profiles. All of which drives sales and greater customer retention.

There are very encouraging signs that the insurance broking market is grasping the technology enabled data-rich nettle. According to Insurance Times’ Digital Adoption Report 65% of brokers are currently investing in data analytics. That said, however, only 19% said they were using intelligence tools to better understand their customers, and a mere 5% said they were using automated decision making (AI). Perhaps even more concerning was the finding that whilst 45% of brokers said they were already using data insights “somewhat effectively”, over a third (35%) said they were not.

There is a clear opportunity for brokers to quickly enhance the data they hold on their customers and the markets they serve, by accessing the ever-growing bank of commercially available high-quality third-party data. And for those brokers with API functionality, integrating this data into their Broker Management System is a fairly simple process. Most brokers are however missing out on this opportunity, with only one in four (26%) presently integrating third party software.

The race to get ahead of the competition is clearly underway, with 92% of brokers looking to invest in data analytics within the next few years, just over half (53%) planning to invest in AI to improve client-facing processes, and 60% planning to invest in AI to improve operational processes. A further 84% of brokers said they currently invest in APIs (third-party integration) or plan to in the next 2-3 years.

Whilst these are encouraging findings, it is imperative that brokers invest in this vital area of technology. Brokers that fail to do so risk losing out to digitally advanced, fleet of foot and data savvy brokers – and potentially MGAs – that will have the tools to hand to ensure they truly know and understand their customers’ changing needs and expectations.

It’s clear that technology is here to help you serve your customers even more and we are seeing evidence that it’s time to think and act now so you don’t get left behind! If you are thinking about your next steps, unlock your Epic potential today and discover how Applied can help you accelerate your digital strategy.