UPFRONT
HEAD TO HEAD
Can robots really replace insurance brokers? More than half of all consumers are open to the use of roboadvisors – so is this the end for the flesh-and-blood broker?
Michael Gottlieb
Lambros Lambrou
Andrew Barile
Founder and CEO BizCover
CEO Aon Risk Solutions Australia
President and CEO Andrew Barile Consulting Corporation
“Yes … and no. Yes, because part of the market is interested in self-education and self-service and is comfortable doing this on their own. As technology improves and people gain more confidence in the technology, more and more people will shift to self-service. However, if a better outcome is achieved by using a broker, people will stick with a broker; specifically, this includes those whose insurance needs are more complex and require the assistance of an expert. Brokers who are able to demonstrate knowledge in their area and add value to the process will be the ones sought after.”
“Technological advances will not be able to completely replace brokers. Insurance has always been a ‘people’ business; the inability of robots to replicate human interaction is key for brokers’ sustainability. Robots and AI will certainly be able to bring efficiencies and drive a new level of analytical insight. However, it will be the ability of brokers and advisors to create trust, responsibility and accountability in the client relationship that robots and AI will struggle to compete with. In the future, our industry will invest in both talent and robotics, each achieving what they are ideally suited for today and tomorrow.”
“The robot will not be able to completely replace the personal service provided by insurance brokers for years. Many insurance products, such alternative risk insurance products, require a good deal of creativity and negotiation. Agency captives, deductible buy-back policies and fronting insurance products are beyond the scope of robots. Brokers who are flexible enough to embrace those insurance products that are simplistic in nature, like a renter’s policy, will be serviced by robots. Technology will make the broker more efficient and help drive prices down.”
CUTTING OUT THE MIDDLE (HU)MAN According to a report from consulting firm Accenture, almost three-quarters of consumers worldwide would be amenable to basing their insurance purchases solely on the opinion of a robo-advice platform, which they deemed to be faster, less expensive and more impartial than a human. What’s more, a recent study from Oxford University put insurance underwriting in the top five jobs most vulnerable to automation out of the 702 professions surveyed. However, brokers shouldn’t panic just yet. Trevor Maynard, head of innovation at Lloyd’s, recently told the Financial Times, “The bespoke risks in society will never go away, as there is always innovation in the economy. Providing underwriters embrace the new technology, they have a very strong future.”
www.ibamag.com
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2/08/2017 3:25:40 AM