Expert View: Customer-centricity is key to broker survival

There were many thought-provoking debates at the recent Insurance Times Broker 50 event, with diverse opinions on how the broking sector will develop in the coming years. Some consistent themes dominated the agenda, however.

This year is bringing a number of significant changes to the regulatory landscape, including the Insurance Act and the Competition and Markets Authority focus on add-ons.

There cannot be a broker who would disagree with the logic of what is trying to be achieved although as always there can be significant challenges interpreting the changes and ensuring they are delivered in a way that is beneficial to customers. These include practical challenges that brokers have to embrace.

Digital 

There is no doubt that the digital landscape is changing, and changing fast. In today’s digital world, customers want to be able to quote, amend or purchase a policy at a time that suits them using the means and technology that they want.

Brokers must listen to customers’ needs and adapt their service to meet their changing demands. The most successful brokers are embracing technology and constantly refining and advancing the tools that they provide their customers.

Segmentation 

But being customer-centric doesn’t end there. In this competitive environment, brokers need to have a clear focus on a segmented audience to differentiate themselves from others.

The most successful brokers will stand out from the rest by being clear about what they stand for and what markets they are in. They will have an in-depth understanding of their customers, their needs and spend time to ensure that they have the best range of products selected specifically for this market segment.

Ultimately, the best brokers know their customers and the better they can tailor their products, the more successful they will be at standing out from the crowd.

Service

Finally, successful brokers will focus on the full service being provided to their customers, ensuring that the third parties they work with provide the service and experience that their customers deserve.

Claims are an important part of this, as an insurance policy is only ever as good as the claims service that supports it. Brokers will be acutely aware of the detrimental effect that a negative claims experience can have on their brand and retention rates, and will select their insurance partners based on their claims service. 

Customers are demanding and deserve a really high quality service, and the brokers that understand this and meet expectations will have a successful future.