2021
25%
30%
35%
20%
15%
10%
05%
0%
%
93.8
%
78.2
%
17.9
The Insurance Times
Digital Transformation Report 2021
6 Survey Insights for UK Brokers
Produced by Insurance Times in association with Applied, the Digital Transformation Report 2021 looks at the findings of the 2020 survey, which was designed to reveal the evolving role of the broker during digital transformation and the business impact technology has on efficiency, productivity, processes, customer retention and more.
1
Brokers are evolving their communication and marketing to be more digital.
Finding: Nearly 70% of brokers said they took steps in 2020 to connect with and market to customers and prospects digitally. 71% of brokers are confident they are matching the growing digital expectations of consumers.
Scroll through to explore highlights from the survey and download the full report.
Business Impact: Competition is high and consumers have come to expect quick access to information and simpler digital interactions. Remove friction from the customer experience with self-service technology that gives policyholders the freedom to access insurance information, documents and online bill pay on demand.
Andy Fairchild, Former CEO, Applied Systems Europe
From the answers to the survey, we can see that brokers are becoming reliant on their tech to make sure that their basics are in place and that their tech enables them to continue to innovate and be competitive.
2
Business Impact: Cloud hosting offers many benefits including improved performance, flexibility, security, reduced IT resource expenses, disaster recovery, and access to data anytime, anywhere. With cloud-based software, brokerage employees can stay connected to policyholders, prospects, insurer partners, broker co-workers, and information in core systems.
Finding: Nearly 80% of brokers report investing in the cloud to improve their operational efficiency.
Brokers are investing in cloud-based technology now.
For complete survey insights and discussion from industry experts, read the full Insurance Times report.
That’s just a snapshot of the state
of digital transformation.
3
Business Impact: The 2020 pandemic has driven the world to working remotely and created a new normal that will carry on even after stay-at-home orders lift. To operate effectively in this new digital reality, brokers need convenient mobile access to the system of record.
Finding: 59% of brokers said their employees can interact with their broker management system outside the office via a mobile device – a 7% increase year on year.
More brokers are giving employees mobile access to the BMS.
4
Business Impact: A digital brokerage delivers greater efficiency because technology automates the majority of the manual, time-consuming tasks required to run the business, such as establishing workflows, serving customers, connecting to insurers, prospecting new business and analysing operations.
Finding: 74% of brokers said digital transformation has delivered greater business efficiency.
Digital transformation has increased efficiency for brokers.
5
Business Impact: Digital businesses deliver superior customer service via customer online self-service and mobile apps that provide policyholders with 24/7 access to insurance information. By offering multiple ways for consumers to interact with the business – whether it be in person, phone, online or mobile – digital brokers create happier customers, which ultimately drives business returns through enhanced retention and growth from new business.
Finding: 34% of brokers report offering their customers a self-service portal – a 6% increase year on year. 25% of brokers provide a custom-branded mobile app to policyholders.
Self-service portal and mobile access for customers continue to rise.
6
Business Impact: Digital technology is designed to create greater value for businesses, including growth, productivity and increased customer satisfaction. Data shows brokerages that digitally transform can achieve a 15% increase in their organic growth rate and 158% increase in revenue per employee¹. Technology also enhances a broker’s ability to respond to customers. This is significant because customer experience is one of the most frequently cited reasons for an insurance customer to renew a policy. Lastly, digital technology reduces manual tasks and processes. This allows employees to focus on selling and serving policyholders.
Finding: The primary business area brokers feel benefit most from digital transformation are customer retention (61%), employee productivity (60%), and customer service offering (59%).
Brokers clearly see benefits to digitally transforming their businesses.
Joe Sultana, Chief Operating Officer, Applied Systems Europe
You have to bake digital right into your business. It’s not a separate plan, it must form part of your overall business plan.
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¹Applied Digital Broker Annual Report 2020