Searching for risk
09 May 2019
09 May 2019
How insurtech platforms can help insurance brokers.
Insurtech as a term describes the innovation of technology used within the insurance sector. By trying to create new and relevant methods of placing business, many start-ups and new companies are trying to shake up the insurance profession, bringing it into the digital age. By understanding data and the way it is used, insurtech platforms are trying to engage better with insurers.
With risks changing all the time, and brokers wanting to broaden their appetite to meet increasing demands from clients, digital platforms can provide innovative solutions on how to stay up to date. By attempting to understand different sectors of the market better, these emerging companies can consider broader insurance offerings beyond property and casualty by creating new digital relationships.
One initial method saw the rise of online directory sites. Rather than relying on traditional paper-based directories or existing relationships with insurers, these sites provided brokers with a way of researching new risks or looking up new business. By offering up-to-date listings and contact details connecting directly to MGAs and insurers, brokers are now able to look up and place business quicker.
One such directory site is insurr which launched in the UK last year after an initial roll-out across Canada and Australia. Aimed at the specialty insurance market, insurr provides brokers with full product listings with accompanying factsheets and application forms available via a keyword search. The information shared also includes interviews with industry experts, video tutorials and webinars. After a year online in the UK, insurr has also recognised the value of data analytics, identifying what types of risk are popular in different parts of the country.
Melissa Young-Sing, the Project Manager at insurr, explains, “It’s more agile and reactive than print directories and more valuable than a Google search because of the product documentation it provides on one platform. In getting thousands of brokers to use the insurr platform, we’ve been able to collect some really insightful data on the commercial insurance market. We’re able to study and analyse trends at a granular level, which means we’re also able anticipate and identify market opportunities for companies”.
Another notable upcoming site is Insurercore, a digital insurance market directory for the global commercial, specialty and wholesale insurance markets. Tapping into the popularity of social media, Insurercore is a web-based application that allows brokers and insurers to create unique profiles to connect to each other and target relevant business. All included firms also are vetted to ensure they are registered with the FCA and Companies House. After establishing themselves at the Lloyd’s Lab at Lloyd’s of London, they will also be formally launched at BIBA2019.
“Insurercore will change the face of the intermediated insurance market,” said Peter Clarke, Founder and Managing Director of Insurercore. “This may seem like a lofty goal, but it is very achievable with the right technology and the right people on the platform. What we want to achieve is getting the 'old school' and the 'new school' of insurance practitioners and insurtechs in one easy to access place.”
The functionality of Insurercore will allow brokers to access up-to-date details of underwriters, insurers, insurtechs, other brokers and individual Lloyd’s broker profiles. As risk appetites change, keeping up to date through digital networking will mean that this information will be available much more quickly in real-time. Users will receive notifications detailing any changes to their network’s risk appetite and profiles. This will be particularly advantageous to new broking markets. Insurers will be able to research who’s new in insurance and market themselves directly to potential clients. It will also benefit start-up SMEs as they can struggle to get the cover they need during their first few years. In short, a tool like this will allow firms to connect more quickly and do business more efficiently – with the added benefit of having a one stop shop for a list of insurtechs.
With many more insurtech companies offering innovative solutions for digital capabilities, there is still much more potential for future developments. Some new platforms may focus on specific types of risk, use AI to place risk, bring reinsurers together or use data-driven predictive analytics to foresee risks. With regulation still slow to respond to the rapid growth of this market, it will be interesting to see what will be seen as fair competition. However, at the moment it is the insurtech companies themselves who are leading the way.
This document is believed to be accurate but is not intended as a basis of knowledge upon which advice can be given. Neither the author (personal or corporate), the CII group, local institute or Society, or any of the officers or employees of those organisations accept any responsibility for any loss occasioned to any person acting or refraining from action as a result of the data or opinions included in this material. Opinions expressed are those of the author or authors and not necessarily those of the CII group, local institutes, or Societies.