Last year, we announced our acquisition by Acturis, a leading global provider of insurance software and services for insurance agencies and carriers worldwide. So, it’s time to look to the future and see what’s next for InsureTech (and Broker Buddha).
With the recent rapid global technological developments, including the expansion of APIs (including ours) and expanded uses of AI, the use cases for these technologies are quickly finding their way into the insurance industry—meaning significant changes for insurance brokers.
And with our new acquisition and partnership with Acturis, the changing times have got me thinking about what the future holds for the industry as a whole.
With that in mind, let’s dive into my predictions about the insurance industry’s future.
What will stay the same?
- Brokers aren’t going anywhere - Brokers will remain as critical as ever in providing reliable and sound advice to customers. This has always been a core belief and that doesn’t change. In fact, IBIS World has reported that between 2017-2022 the insurance brokers and agencies industry market size has grown 2% each year.
- Businesses themselves are a critical data source for underwriting - While some data like revenue, headcount, vehicle and driver info and COPE data may come from 3rd party sources, necessary information about company operations needed by underwriters to effectively price policies will have to come from the businesses themselves.
- More Insurance buyers will demand digital tools - No surprise here, the world will be continuously becoming more digital, and with that, the number of customers buying insurance, who are digital natives, will continue to increase. As millennials and Gen Z will move into higher positions of power, their need for insurance will expand. And brokers will need to continue to cater to this new type of customer using more advanced digital tools.
What will start to change?
Core systems and software within the insurance sector will be more interconnected than ever. Much like Broker Buddha integrated with AMS360 through the power of APIs, broker operated, client-facing digital tools will connect directly into client systems to extract data, saving resources and time for brokers and clients by streamlining the collection of customer data. And some APIs already exist. For example:
- Quickbooks Online has an API-integrated app that allows clients to digitally send their financial information to Brokers without manual entry.
- For payroll and HR employment systems, Finch’s universal API has over 200 integrations. Ideal for clients who need to send their people and payroll data to Brokers to support Workers Comp submissions.
- For Fleet management, platforms like Damoov use APIs to expose information regarding driver location, mileage, and safety scores.
Since many insurance giants are heavily investing in AI development, all carriers will inevitably have to adopt this technology to make better underwriter decisions. This will allow pricing to become more transparent and fair across the industry.
Furthermore, with the entrance of Acturis into the US market, the competition for the agency management system (AMS) business will only get hotter, forcing everyone to up their game to compete. The Insurance Broker Software Sector has a new major player, that will inevitably generate new innovations, more competition, and more value.
With the continuous development of InsureTech, the industry’s future is looking bright (and automated), and I’m excited about how Broker Buddha will evolve and the revolutionary products and services we can offer next.
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