Insurance brokers could be ‘cut out’ of the market if they don’t embrace tech

Insurance brokers has been warned that failure to adopt technology in business practices could see them ‘cut out’ of the market.

Simon Burtwell, partner in the financial services consultancy arm of Ernst & Young (EY), has told brokers they will not be included in the transactions of the future if they ignore the growing importance of technology.

The relatively recent emergence of telematics and wearables devices are two examples of technology which he claimed would lead to huge changes in the industry.

"It is something they have to be part of or they will be cut out,” he told the audience of the Innovate Finance insurance hackathon.

He said that policyholders and insurers both want the same thing – to make claims unnecessary – but he added that customers also want ‘more engagement with insurers than ever before’ and for them to help them manage risk in their lives.

Burtwell said: "The opportunity for brokers is where there is a strong relationship. It is difficult to disintermediate something that you can't execute digitally such as human relationships."

The researchers’ Global Consumer Insurance survey, of 24,000 consumers, released in November last year found trust in UK insurers (53%) was lowest out of all countries in the EMEIA region.