The technological evolution continues at a breakneck pace. Brokers have to be proactive in adapting to this ever-shifting environment in order to meet consumers' new expectations. Against that backdrop, the RCCAQ's technology committee recently met with the main industry actors with a view to identifying major trends having an impact on the profession and formulating recommendations that were recently adopted by the RCCAQ's board.
Trends destined to change the face of the brokerage sector
A number of major trends are already having an impact on insurers' business practices; they could also affect brokerage professionals. As noted by the committee, the following four factors are destined to change the face of our profession.
- Artificial intelligence (AI)
AI is the process of creating intelligent machines endowed with cognitive capacities that enable them to take on human roles. Thanks to three specific trends emerging from the field of AI (behaviour-based pricing, customized coverage, faster claim settlement), insurers are saving both time and money, as well as improving data quality.
Blockchain technology has to do with storing and transmitting information. "Distributed ledgers" use independent computers (known as "nodes") to store, share and synchronize operations without a central "administrator". The repercussions for the insurance sector are significant, particularly as regards collecting secure information.
The Internet of things is the interconnection of virtually every apparatus, smart accessory, cellphone or device capable of relaying information in real time. The Internet of things will allow insurers to reduce risks and insurance benefits while creating new revenue sources.
Access to account and payment information makes it possible to offer custom-tailored micro-insurance and regular insurance products. In the future, insurers will work in partnership with banks and "insurtech" companies. In this regard, the RCCAQ will be closely following the review of the provincial as well as the federal Bank Act. The RCCAQ will also be taking steps to determine new opportunities that might stem from this new technology—and how brokers could capitalize on them!
What about consumers?
More and more, Quebec consumers are using technology when they're in a buying mood. They now expect greater transparency, more competitive prices, one-stop shopping and customized service. However, the advisory aspect continues play a key role in their purchasing decisions. According to a recent Accenture study, 74% of consumers expect to receive advice when shopping for financial and insurance products.
Brokers' role
Along with other entrepreneurs making their way in a world in which technology is developing at light speed, brokers will have to seize the opportunities provided by these new technologies. Thanks to their professional ties, brokers tend to be close to their clients. This wonderful advantage enables brokers to set themselves apart from the competition.
Take the time to provide more advice
Automation and analytical tools can be used to segment and better define clients' profiles. In addition, you can use the time savings to complete non-advisory tasks. For example, IT is used by insurance companies to streamline the claims process and to provide technical advice. Brokers stand to benefit since they can opt to spend more time assisting policy holders.
Next steps for the RCCAQ's technology committee
In light of the need to take action and adapt to these major changes, the RCCAQ will be undertaking a number of initiatives aimed at supporting its members during their technological transition.
- The committee members will continue to raise brokers' awareness and boost their knowledge of new technologies and the related impacts on their profession.
- The RCCAQ team will continue its lobbying efforts in order to benefit from government programs (tax, funding, etc.) that could provide brokers with financial assistance during their technological transition.
- The committee will be implementing an award honouring an RCCAQ member who makes distinctive use of new technologies in his or her firm. The award will be presented during the annual convention.
- The committee will be following technological developments closely, particularly the Data Exchange project (spearheaded by IBAC), in addition to analyzing various opportunities to see how brokers stand to benefit.
One thing is for sure: high demand for technology has led to changes in consumer behaviour, although consumers still need someone to advise them. Brokers will need to embrace change and stay focused on the client experience. For their part, the committee members will stay proactive in identifying how RCCAQ members can best seize the opportunities created by these changes.
