Sedick Isaacs | Brokering a role for insurance intermediaries in 2023 and beyond

Despite ongoing challenges such as severe loadshedding, a rise in extreme weather events, and persistently high inflation, the insurance industry is resilient thanks to continual innovation, sound business practice and strategic partnerships, not least with brokers. As trusted intermediaries, brokers and insurance advisers must understand the evolving risk landscape to best advise clients on changing conditions that affect the risks they face.

Not all risks can be predicted, but many can be anticipated. Therefore, intermediaries should proactively engage with clients to prudently manage these risks. In this raised-risk environment, where underinsurance is a chronic issue, brokers must ensure that their clients are adequately insured. Brokers must regularly advise clients on emerging policy changes that affect their cover, create ongoing awareness of applicable limits and deductibles, and advise on alternative cover options that may be available in the market.

Of course, good intermediaries need adequate support to offer the highest levels of service. Digital technologies have an essential role to play, unlocking benefits such as enhanced levels of customer service and quicker claims processing. While technology offers more opportunities to go direct to consumers, brokers and advisers remain uniquely placed to help guide and drive investment in scenario planning and assessing strategy resilience to build more robust businesses.

A more complex risk environment means that disputes and queries are rising. It is critical that policies are accurately underwritten and that cover and policy limits continue to be reviewed and communicated. This is vital in avoiding a scenario in which policyholders face the risk of having claims rejected. Navigating the risk landscape requires partnering with experts with deep insight, foresight, and a pragmatic approach to resilience. An engaged broker’s advice is becoming increasingly important when preventing disputes and ensuring customer satisfaction.

Ultimately, brokers and financial advisers still have a central role as trusted advisors for their clients. This will remain the same, especially amid looming insurance price increases. Brokers must be prepared to explain the reasons behind such increases and further showcase the value of cover to clients. The high inflation environment makes it a challenging task for the broker. Over and above this, the broker needs to understand and explain the policy wording restrictions and changes. While this may be a fraught issue, it is essential as it is part of the strong expert advice client expect and should receive.

That doesn’t mean the role of the broker should remain static. Brokers must evolve regarding customer engagement channels and how they onboard their customers. Insurance companies that partner with brokers should tap into technological trends, such as automation, to support brokers better to perform complicated and tedious admin tasks more quickly and efficiently. This will enable brokers to benefit from more streamlined processes and lead to higher levels of customer satisfaction while allowing insurers to acquire more business quickly and provide the opportunity to tick all of the compliance boxes.

*Sedick Isaacs is the Head of Business Support Services at Bryte Insurance.