Th report indicates insurers and brokers embrace technology too tactically. Take the major goals of innovation for Brokers:-
"Brokers further believed that technology could help them reduce general costs (24%), while 23% believed it could reduce office administration and 21% said it could enable better interaction with customers."
Why focus on just cost reduction when digital conglomerates are a big threat with their one-stop shopping and high customer satisfaction scores.
When 50% of customers would trust Amazon to deliver Auto Insurance innovation has to be a strategic priority.
Brokers and Insurers need to read this report and compare the findings with their own vision, goals and strategy.
What are the barriers stopping such an approach?
"When asked about the barriers to the uptake of technologies, 77% of respondents highlighted that the cost of implementation was a main barrier, followed by software house development (62%)."
That strongly suggests that the big ticket licensing costs of insurance platform suppliers is a brake on success. In the same way the BI and Analytics and ERP markets have moved to subscription pricing with no upfront costs , Insurance vendors need to adopt the same approach.
Barriers Brokers further believed that technology could help them reduce general costs (24%), while 23% believed it could reduce office administration and 21% said it could enable better interaction with customers.