The future of insurance brokers

The future of insurance brokers

I was talking with a college the other day who was losing multiple clients on a regular basis.

Recurring clients had suddenly stopped coming back to reassess and renew their policies, instead opting to turn to the internet and google for their insurance needs.

In the recent years, there has been a shift in focus from physical to online, putting both customer and brokers at risk. Brokers are losing clients to the internet putting their businesses at risk of closure, and clients are at risk of being underinsured in crucial areas because they made a mistake choosing their coverage.

For brokers to remain relevant in this changing landscape, they need to change up the way they operate and become a one stop shop for financial and insurance advice.

While many people feel that the first thing that they need to do is compete with the various computer systems and AI’s that are present on the internet and their prices, this is wrong as it simply doesn’t work. Instead, you need to make yourself indispensable by adding more value to your services.

It’s not just enough to offer your expertise to customers anymore. Due to the rise of the internet, the average is more informed than ever and feel confident in their ability to make decisions regarding their insurance without the help of a broker. Here are three different methods adding value:

1- Be a trusted adviser to your clients for other services

According to Scott Guse, Asia Pacific Insurance accounting leader at KPMG, providing “better service… [like] advising [to customers] how they can improve their risk management practices,” is crucial to the future success of brokers.

Going above and beyond the traditional role of simply shopping around to find clients the best deals, and becoming a one stop shop and adviser for all their needs, even those outside of your service area, is the way of the future. If for example, a customer is concerned about the risk of a particular business decision, do your research about both the company and the decisions possible outcomes, before offering advice on how to manage the situation.

By going out of your way to cement yourself as someone of value to them in multiple areas, you are increasing loyalty and building a relationship with clients that allows you to proactively make recommendations regarding their finances in the future.

2-     Flexibility in payment  

The current financial market is a tricky one for many people, due to the ever-changing job market and the prospect of fluctuating interest rates. It is in times like these where it pays to be flexible. Offering a variety of different payment options and plans including weekly, fortnightly and monthly payment option allows you to access a larger client base by appealing to different groups including those who are struggling financially.

For the client, this would mean that instead of paying their insurance premiums all at once and taking a huge chunk of money out of their cash flow, they could pay off their policy in instalments that fit their budget.

3-     Be proactive and let them contact you

By building a strong relationship with your clients and offering a high-quality level of service during their dealings with you, you become their go to when it comes time to update their insurance policy.

To keep this image in their minds, be proactive and take an interest in them. Try taking the first step and initiating contact when it nears time for their insurance renewal and talk to them about what has changed in their lives and their current circumstances. Taking an interest allows you to fully advise your clients, and strengthen the loyalty they have to your brand by showing that you care.

The projected future of insurance brokers is dramatically different to the current model. With over 50% of Australian’s buying their insurance online as of 2013, brokers need to change things up and offer their clients more value for your services. Competing with the internet can be challenging, but by implanting changes to suit the changing market and making yourself indispensable to your clients, they will keep coming back to utilise your services.

Want to see if and how I can help you? I offer a 30-minute business review session. During that session I provide my advice on if and how I can help you and your business. To find out more email me at brett@thiedemaninsurance.com.au or phone 0401 109 324.

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