The current regulatory framework establishes a broad concept around the term distributor as a figure authorized to market insurance in the market, which forces us to consider important singularities when we refer to its role and evolution in the industry.
In a multi-channel market, such as the Spanish one, it is essential to understand these singularities well, especially when we refer to issues such as advice, professionalism, the contribution of value to the consumer, the optimization of business processes, or initiatives around the innovation; and for this reason, I would like to focus particularly on the distribution activity that applies in the field of insurance brokers.
Brokers have evolved significantly in recent years, an evolution driven mainly by the development of the insurance industry, regulation and the adoption of new technologies. Over time, brokers have expanded our service capacity and, through professionalization, we have become key players in the market, helping clients find the best insurance solutions to protect their interests, both in the field personal, family and business.
A disruptive change
This evolution has been especially accentuated in the last decade, reaching a critical point as a result of the 19 COVID-2020 pandemic, and everything points to what until then was a progressive digital transformation process in accordance with a “quiet” social dynamics are turning towards a disruptive change in the practices of consumption of goods and access to services. There are those who forecast a 2030 horizon with an unrecognizable insurance market, which seems a bit excessive to me, but I do share the idea that many things are going to change, because they are already changing.
We brokers have to optimize our business processes, improve customer satisfaction and experience with respect to the professional service we provide, and explore new business opportunities in an increasingly competitive market.
The change in social behavior, driven by the circumstances experienced during the confinement in the pandemic, and especially by the incorporation of generation Z into the labor market and business and institutional leadership, establishes new challenges for runners who have to optimize our processes business, improve customer satisfaction and experience with respect to the professional service we provide, and explore new business opportunities in an increasingly competitive market.
We have been hearing for years that the market is moving towards disintermediation, that insurance brokers are going to disappear, but I think that this is neither true nor realistic. It is only necessary to observe how in a highly digitized and consumer-oriented society, such as North American society, the number of commercial intermediaries grows significantly and constantly, and the true reality, and far beyond the opinions interested in defending their models of business, with little elegance and ethics, in some cases, is that we are heading towards a hybrid insurance market.
The hybrid market emerges to combine the dynamics of traditional insurance distribution and digital services, and thus offer consumers a new and better experience through greater flexibility and adaptability to their needs and preferences.
Brokers, who mediate 20% of the total premiums in the sector, have to protect our current position by becoming relevant players in the new hybrid market. We already have the capacity for advice and service, proximity to the client, knowledge of their circumstances and needs, independence and objectivity; And now it is necessary to add to this technological resources, operational structures and methodologies, in addition to adequate training for their use, which allows us to implement a hybrid model whose advantages are valued and effectively perceived by the consumer.
The ability to use information is essential because, in my opinion, it protects the broker's main professional asset: his independence.
And throughout this transformation process, the capacity of the broker in information management, in the harnessing the power of data. Everything will go through the transformation of data into knowledge for the design of strategies and decision making. The ability to use information is essential because, in my opinion, it protects the broker's main professional asset: his independence.
There are different paths and formulas to advance in this transformation process and look optimistically at the horizon of 2030. At E2K we have been promoting the insurance broker for 30 years from a model based on business cooperation, which has always combined the drive for development and growth of the business through our service factory, with the parallel development of a technological project by brokers for brokers such as ebroker. E2K has based and continues to base its strategy on driving brokers into the future on three fundamental pillars: business development, application of technology, and recognition and respect for their individuality and sovereignty as a professional and company.
Throughout 30 years we have built and developed E2K, by and for the progress of our community of insurance brokers; always with an eye on their future, a future that we live moment by moment every day. A future that is now.
CEO of ebroker
Article published in Community of insurance the March 20 of 2023.