Digital inaugurated the era of usage-based insurance. Insurance brokers can draw information from wearables, smart devices and vehicular telematics to create unique offers for their clients. The digitization of the workplace in brokerage firms also simplified the processing of insurance claims and equipped insurance salesmen with the necessary tools for contextual advice and real-time, paperless policy sales.
Brokerage firms are under greater scrutiny, thanks to tougher regulations and new best practices standards. The profitability of the insurance business is also in check, as interest rates remain low and competition, tight. A new society demographics, with affluent baby boomers on their way out and tech-savvy, budget conscious millennials on their way in, also presents its challenges and calls for greater changes within brokerage firms.
Insurance firms have the chance to attract younger clients by tracking their driving style, fitness and well-being via vehicular telematics, wearables and smart devices and offering those leading a balanced and healthy life premium policies and rewards. Information and communication technologies (ICT) also expand the role of virtual brokerage and allows insurance sales personnel to work both proactively and reactively.