The future insurance Broker proposition

How will data change the role of the insurance Broker

Marcus Baker, Global Head of Marine and Cargo at Marsh JLT Specialty
discusses how data will change the role of the Broker in the marine insurance sector.

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Using data to our advantage

Watch this short three-minute video to find out more about the opportunities a data-driven approach presents to the insurance Broker community. Marcus talks about using data to drive automation, proactive risk management service provision and the creation of new insurance products and services.

Alternatively, you can continue reading the key details below.

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Improved client focus

Data can augment client relationships by helping to:

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Automate standard risk placement for faster service

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Provide real-time risk management services to reduce losses

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Create new products and services to better protect clients

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More efficient processes

Streamlining insurance processes can have a number of positive outcomes for the Broker and the Insured including:

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Faster placement of standard risks

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Increased time to focus on complex risk

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More accurate pricing to help win new business

Insurance is relationship driven

Marcus began his presentation at the Concirrus Power20 Summit by reflecting on his personal experience within insurance Broking.

'I've been a Broker for five decades and my experience has been very much like other people of my age, the role is relationship driven and that's been a fantastic part of this business, I don't ever want to see that disappear.

But I do think we have an opportunity right now with access to vast amounts of data, to augment our existing capabilities and our business relationships.

I think there will be a lot of insurance business that will be done in a different way, automated, where we can capture data and process it quickly.'

 

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Broker Proposition of the Future

Three tier broker engagement model

Marcus presented a three tier model designed to help Brokers align their proposition to the needs of their clients.

'The focus on transactions I think will change for Brokers. There is an opportunity for Brokers to be greater advocates for our clients in terms of risk management. The level of access to data is going to be phenomenal, so we'll see a big change from being purely transactional to being much more consultative I think, [especially with larger clients and more complex risks].

If you look at the pyramid, you've got a huge proportion of clients on the bottom level where there is an opportunity to automate the transaction.

Risk management consultancy

We're going to have an informed group of clients in the middle where we can make use of some automation and offer an element of client risk management. But at the top, that's where I think we're going to have an opportunity to deliver that great transactional piece with a much more consultative element of risk management.

A lot of it is going to be about how we analyse the data, what vision, views and new products we can develop from that.'

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An opportunity to create new products

Our clients are moving into different places, and they have longer supply chains. The logistics piece from cradle to grave is a massive, complicated business right now. We need people that understand that and want to dive deeper into the industry, and then are able to say, actually, if we grab data from here, here and here, we can create a slightly different product. For the client this is much more valuable than perhaps buying three different products, trying to put them together and knowing that you've got potential gaps in cover. That's the sort of people we're going to need in Broking going forward.'

Conclusion

An incredible opportunity for change

'What an incredible opportunity, to come into an industry that is just about to go through some
massive positive change for the first time in over 300 years.'

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