Biba 2024: Brokers urged to invest in data to transform client relationships

Cost and uncertainty are hampering the ability of brokers and managing general agents (MGAs) to access the data needed to transform their relationships with customers.

Paul Richmond, head of technology operations at insurance distribution platform provider Novidea, told delegates at the 2024 Biba Conference that the ability to transform their client relationships depended on access to data and enhanced systems.

It came after the company undertook a survey of its brokers and MGAs and found that 75% of respondents said they planned to change their management platforms by 2025.

“The figure was a lot higher than we expected,” Richmond said.

“However, we found that there were a number of concerns, with 41% of brokers saying that the biggest worry with their system was data quality.

“Over a third were concerned over data security, 35% said scalability was a problem and 34% were concerned with the cost of any upgrade.”

Benefit

Richmond also told brokers that there was a real benefit if they got a better handle on the data they hold on their clients.

“It is about prioritising your customers’ needs and enhancing the process in which you interact with them,” he said.

“You need data to understand the experience and turn that into insight on what can we do to be better.

“At the centre of these efforts is data.”

Profile

Richmond also said that brokers and MGAs need to create a profile of their customers.

“To do that effectively, you need to access and analyse a large number of data points. You should also be asking yourself ’what does good experience for the customer look like?’,” Richmond said.

“If I ask brokers CEOs who their top 10 producers are, they are very likely to be able to tell you very quickly. If you ask them which are their top 10 operationally efficient relationships, they will struggle to respond as quickly.”