According to new research by Novidea, the data-driven insurance distribution platform, 80% of the brokers, insurers and MGAs surveyed do not have effective business intelligence tools in place. One in five brokers (20%) are currently using four or more different systems to manage their day to day operations. The research also showed that many are struggling to adopt the tools necessary for digital transformation.
Novidea surveyed a range of brokers, insurers and MGAs to assess the reality of technology adoption in the sector. When questioned about their current level of technology adoption, less than half of respondents had a digital system in place (42%), and even fewer had a Customer Relationship Management (CRM) platform in place (36%). Only one in five had a digital Business Intelligence (BI) system in place.
Novidea’s research also showed that a quarter of respondents that did have a digital (25%) or CRM system (24%) in place felt that it was not user-friendly and therefore under-utilised; 15% felt the same about their policy lifecycle management system.
With so many admitting to having siloed or cumbersome systems in place, there is a long way to go before the insurance industry is able to meet its ambitions of being more digitally driven. However, nearly two thirds (64%) of respondents said that they anticipated an increase in their IT budget, which suggests that most companies do realise that a business opportunity exists and are ready to invest in new technology to achieve digital transformation.
To make the most of the investment, brokers, agents, insurers and MGAs will need to consider and evaluate data-driven technology that has the power to grow the business.
Roi Agababa, CEO and Founder of Novidea, comments:
“It’s encouraging to see that the majority of insurance professionals now have an awareness that their business needs to become more digital in order to deliver on customer expectations. The results of the survey firmly reinforce Novidea’s vision that by investing in a digital broker management solution, brokers and agents can move to a single integrated platform and derive real-time insights and growth opportunities that have, up until now, been inaccessible.
With this type of system, brokers are able to gain a 360-degree of their business operations, which not only enables them to make better business decisions, but also to provide the level of service that their customers now expect and demand.”