“You must be on the first page of Google.”
“We have 12–18 months to get this right.”
“Thousands of people are sitting in basements looking for opportunities for insurance disruption.”
“Canada will be a key target in the InsurTech space.”

The alarmist clock was ringing! Attendees of the 2017 Insurance Canada Broker Forum were treated to a generous amount of formidable commentary at the Toronto event held March 1st. A healthy mix of broker showcasing, strategic discussion and future prediction took the stage. Content from the day prompted a pause and need for reflection.

Time has brought perspective and #ICBF2017 has inspired the following thought: brokers must know their purpose and innovate accordingly. Without slowing down the momentum of technology adoption across brokerage offices, the thought focuses on how brokers should decide their best option. What’s the purpose of your brokerage? Innovate from there.

Questions inspired from #ICBF2017:

WHERE DOES THE PROFESSION OF BROKERING INTERSECT WITH TECHNOLOGY?
Many brokers consider their role as professional advisor their primary reason for being. This is the differentiator. Advice. Choice. Relationships. Service. If these are words that your brokerage chooses to link with your value, let’s enable those qualities with technology, not reduce them.

But not all brokers use those adjectives as their driving purpose. “We have found that customers are willing to buy a certificate of liability online just like they would a can of pop – with no thought. It’s a no brainer for them… We treat insurance as off the rack versus tailor made. We have stopped asking so many questions,” said Sam Natur, CEO & President, Bullfrog Insurance.

Not all brokers are the same, some choosing “advisor” as a secondary objective. Our advice? Adopt technology that leverages your value. While insurance e-commerce is booming and first mover brokers are being celebrated, do not miss the subtle points that make e-commerce a difficult creature to rein. There’s a significant investment required to truly make it work, not to mention the expertise, experimentation and analytics required to balance the profit margins. There are many sales models available for brokers that offer a different value proposition for today’s shopping consumer.

TECH TOOLS ARE GREAT, BUT WHO’S SERVICING THE CLIENT?
Bill Morris, Senior Partner at Navicom, suggests that the table stakes with respect to consumer experience keep rising. He suggests that creating value for customers lies in four easy strategies:

* Give great advice
* Provide answers to questions real time
* Offer to save money
* Provide electronic access to insurance policies

“66% of our customers research online, then connect via phone or otherwise,” said Andrew Lo of Kanetix. So who’s answering the phone and who’s providing advice? All the hype around quirky gadgets and fancy websites may be grabbing headlines, but it’s not where true broker value lies.

ARE FINTECH ENTREPRENEURS COMPETITORS OR COMPLEMENTARY PARTNERS?
Mark Breading, Partner + Chief Research Officer of Strategy Meets Action, says there are over 800 FinTech firms they’re tracking and “25% of those are looking to become insurance brokers.” The phrase “aces in their places” comes to mind. The technology developer is not the candidate best skilled to service and advise clients. Combining different skill sets to work towards a common goal is a beautiful advantage. Could a partnership with a brokerage and a tech entrepreneur be the perfect ying and yang?

IF IT’S REALLY ABOUT THE CONSUMER, WHY NOT INVEST IN BROKER TECHNOLOGY?
An insurance broker is unquestionably the best option for consumers. Choice, advice, advocacy and service. As Jeff Roy, Excalibur Insurance CEO, shared on his LinkedIn page following #ICBF2017: “If you can find money to start up a new company that’s direct-to-consumer, you could have also fixed all the friction issues brokers experience everyday.”

 ARE WE LISTENING TO INTERNATIONAL DATA TO DRIVE LOCAL DECISIONS?
“Aviva is super excited about InsureTech,” said Ryan Spinner, Head of Innovation at Aviva Canada. “We have invested 100 million pounds into InsureTech internationally.” But how does that translate at the local level? Do consumer shopping preferences in different countries match consumer shopping preferences in Ontario? Do our thought leaders and strategists have that perspective? “Insurance is the profile business,” explained Greg Purdy, Partner at Pathway Partners. “Understanding the client population in your area will help you manage client interaction.”

WHERE’S THE BALANCE BETWEEN INNOVATION AND PURPOSE?
Our disruptive environment has made innovation more of a business imperative than ever before. Placing purpose at the core of your organization’s innovation strategy allows you to focus efforts in the right areas and motivate your team to deliver disruptive results. When you underpin innovation with purpose, you create a powerful experience that truly powers success.

Know your purpose, innovate accordingly. This is where the IBAO intends to help.

 

 

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