In recent years, the medium/large commercial lines segment has worked intensively to evolve the distribution ecosystem through new alliances and expansion strategies. In addition, segment operators have been implementing new technologies for distribution to not only improve internal operations and processes, but also to further support the success of distributors, whether they are retail agencies, brokers, wholesalers or MGAs. However, according to new research from SMA, not all solutions meet the expectations of today’s carrier executives.
The recently published SMA report, Distribution technologies for medium and large commercial lines: Operator plans in 2023 and beyond, covers the current state of digital capabilities that operators offer to distribution partners, an assessment of the barriers to implementing new capabilities, and operators’ plans to provide new solutions. Insights are based on a survey of operator executives focused on the medium/large commercial market.
Throughout the sales value chain, insurer executives generally have low satisfaction with digital sales capabilities, particularly in the early stages of the sales process. There is significant dissatisfaction regarding digital appetite solutions, which is not entirely surprising given how little automation exists in the area. The reality is that dealers often misread a trader’s appetite, a challenge that has been around for years. Market conditions can result in the ebb and flow of a carrier’s appetite and can sometimes reverse writing certain risks. Other times, they may have more of an appetite in a specific class. While improved communication can help alleviate pain points, technology solutions that support carrier-dealer correspondence will be essential to the continued success of carrier-dealer relationships.
In contrast, insurers’ satisfaction levels with their digital service offerings are notably higher than sales, and claims inquiry capabilities rank highest among executives. Insurers continue to invest in claims operations, as it is one of the most contact areas for policyholders. However, a recent survey of SMA agents reveals a need for carrier partners to improve claims capabilities, with about half of agents and brokers in medium/large lines of business wanting carriers to prioritize projects across capabilities. discharge and filing of claims.
These insights from the report highlight the imperative for carriers to continue to evolve the way they interact with and serve distribution partners. Insurers that focus on strategies that allow carriers to place coverage efficiently and competitively with minimal friction and a great customer experience will be the ones to go head to head in the future.
For more information on strategies and investments in distribution technology for midsize and large business lines, check out our recent research report, Distribution technologies for medium and large commercial lines: Operator plans in 2023 and beyond. This report is part of SMA’s research series based on surveys and interviews of insurers, agencies, brokers, MGAs and others in the distribution channel, including insights from ReSource Pro’s extensive distribution customer footprint. Get in touch Contact the author for more information on this new research and distribution advisory services.
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About the Author
breading brand He is known for his insights into the future of the insurance industry and innovative uses of technology. Mark consults with insurers and technology companies on forward-thinking strategies for success in the digital age. His inventive methodologies, fresh ideas, creative conceptualizations, and his ability to incorporate InsurTech and transformational technology into business strategies are unparalleled. He also leads SMA’s research program, publishing 25-30 research reports per year and conducting various custom research projects for insurer and provider clients. His thought leadership in the areas of InsurTech, transformational technologies, customer experience, and digital strategies have earned him ranking as one of InsurTech News and Onalytica’s “Top Global Influencers in InsurTech” and a spot among the top ten finalists for the “Top Global Influencers in InsurTech.” Global IoT in Insurance Influencer Award”.
Prior to joining SMA in 2009, Mark spent 25 years at IBM in roles including Global Insurance Strategist and Director of Global Financial Services Executive Conferences, as well as consulting and marketing leadership roles. Mark co-developed IBM’s account-based marketing program and led the global project office to implement ABM across all industry verticals around the world. Mark has held technical and commercial roles in sales, consulting, marketing and business strategy, advising insurers around the world for nearly 30 years.
About SMA, a ReSource Pro company
At Strategy Meets Action, our clients advance their strategic initiatives and accelerate their transformation journeys by leveraging our forward-thinking insights, deep vendor knowledge, and vast industry experience. Strategy Meets Action is an advisory firm that works exclusively with insurers, MGAs and providers in the general insurance market. For more information visit www.strategymeetsaction.com.
About ReSource Pro
ReSource Pro provides integrated operational solutions to insurance organizations to improve insurance growth, profitability and results. Headquartered in New York, ReSource Pro’s global service centers address clients’ operational needs 24 hours a day. Recognized as an industry thought leader and listed as one of Inc.’s 5000 Fastest-Growing Private Companies annually since 2009, the company is recognized for its focus on innovation, service excellence and trusted partnerships, and your single productivity platform for insurance operations. More than 5,000 ReSource Pro employees provide dedicated support to hundreds of insurance organizations, consistently achieving a customer retention rate of over 97% for a decade. For more information visit www.resourcepro.com.
SOURCE: Strategy Meets Action (SMA)
