Technologies that speed and ease underwriting transactions make a major difference when it comes time for brokers to place business with carriers, a new study finds.
The study, "U.K. Insurance Broker Survey: Technology, Service, and Drivers of Choice," was authored by Catherine Stagg-Macey, a senior analyst with Boston-based Celent.
"When asked the reason behind their preferred new business entry method, respondents noted it was the quickest way for an underwriting decision or the option perceived as being least time-consuming," the report states. "This is a clear message to insurers that brokers will support quicker, simpler underwriting processes."
The survey also revealed that brokers are not disinclined to spread their business around. When asked how many insurers it would take to account for 75% of their total new business, 30% answered six or more, 22% said five and 20% said four.
Interestingly, there was some divergence according to individual product group. "Brokers on small and personal lines are more diversified in terms of insurers used, while brokers focused on mid to large commercial are less diversified," the report states. "Interestingly, this is the inverse trend to that in the United States, where mid to large commercial broker business is more diversified in its placement than personal and small commercial."
Since many of the decisions around broker technology involve systems and processes that support new business, carriers would be wise to keep a focus on ease of doing business.
"Insurers know that most brokers have options when deciding where to place their business, and that puts the heat on insurers to provide the best possible mix of products, technology and services," the report states. "Given the extended soft market, the broader financial crisis, competing demands from various channels, and continued pressure on expenses, these issues are receiving more thought than ever before."
