Bringing the big picture into focus at IAA
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Complexity in insurance is helping drive both business and technological advances to new levels – but the effect is a positive feedback loop that will strengthen the industry
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IT CAN be easy to get lost in the minutiae with insurance – it’s a busy world with a myriad of solutions designed for a huge range of risk scenarios.
Managing director Shaun Standfield of Insurance Advisernet Australia (IAA) has an innate ability to stand above the constantly evolving fray and survey the insurance landscape for the big picture.
“The world is becoming more complex, and every business client is facing different risk,” he says.
In recent years, the amount of readily available information about insurance has grown quickly – a development that has both pluses and minuses.
“Ironically, over time, as more and more information is available about insurance, the extra quantity of information and ways to seek insurance coverage has only added to complexity,” says Standfield.
The result has been a growing realisation among businesses that to find the right insurance product for each situation, professional advice is crucial.
“We have certainly benefited from that,” says Standfield. Since 2019, IAA has tripled its gross written premium while lifting client numbers and policies written by 70% and 80% respectively.
Insurance Advisernet Australia is a leading network of insurance advisers dedicated to providing tailored insurance solutions for businesses and individuals across Australia and New Zealand. Focusing on professionalism and integrity, IA leverages its expertise and industry relationships to deliver insurance strategies that mitigate risk and protect assets. Our advisers are committed to understanding each client’s unique needs, offering personalised advice and ensuring peace of mind through optimal coverage and efficient claims support. As part of a national network, we offer the strength and buying power of a large organisation, while maintaining the personal touch and flexibility of a local adviser.
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Insurance Advisernet Australia: the numbers
Over 270 authorised insurance advice practices in Australia and New Zealand
“Price always matters, but value goes much further – real value finds the perfect balance between affordability and peace of mind”
Shaun Standfield,
Insurance Advisernet Australia
Standfield sees two big-picture dynamics enabling businesses to make better choices about insurance and avoid ending up with less-than-optimal products: the growth of authorised representative networks such as IAA, and the major dividends now being derived from investment in data, technology and other systems.
“There is no doubt AR models are allowing professional insurance advisers to run their own businesses with the backing of an AR model that provides sound back-office systems. I also believe our continued investment in data, systems, marketing and compliance infrastructure is crucial for both the continued growth of the AR’s business and the longevity of the AR licensee holder.”
The rise of the AR model preceded the excitement generated over the last year or so around tech advances but is no less important in terms of its impact on clients.
Standfield points to industry statistics to underscore this point. Amid growing numbers of ARs both at IAA and across the industry in general, Australian Financial Complaints Authority data shows that in the year to 30 June 2023 there were 15,911 complaints lodged for general insurance, while there were only 125 matters, or less than 1%, against insurance intermediaries.
“This speaks volumes for the role insurance intermediaries play in providing risk management advice and claims advocacy service to clients.”
One of the most exciting areas in insurance right now is the deployment of AI solutions and the benefits they are starting to bring to both advisers and insureds. The industry is moving beyond simple task automation to focus on workflow transformation, customisation and integration.
Standfield has clearly played around with a few AI bots and can see the potential.
“You can ask any one of the AI models now to provide a view on what insurances you need for any type of business [but]
with technology – the goal is to enable our advisers,” says Standfield.
The reality is that AI can do some things better, but humans will set the parameters and provide the right inputs. Standfield is aware of the implications and dangers involved in trusting AI to do too much. Like many who have tested out AI models, he understands that when left to their own devices bots sometimes tend to present dubious information as fact.
Ringfencing is essential.
“Our AI solution is a closed AI system that only holds data sets relevant to our business and secured within our infrastructure,” he says. “This is crucial in the longer term as we need to lock down the information our AI system provides to ensure it’s accurate and up to date and not biased by outside data that we haven’t verified.”
Privacy is also paramount in the insurance industry, and this will be a matter of managing the risks appropriately. “All technology solutions must meet a strong baseline in terms of security.”
In that regard, the insurance industry is perhaps more likely to succeed in its approach to AI due to the risk-managing expertise on tap at companies like IAA. As more advisers become familiar with optimising technological tools, the result will be better service to clients and quick, tailor-made solutions at the touch of a button.
There is a lot to be optimistic about, says Standfield. “I believe the future of broking in Australia is excellent.”
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The benefit of insurance intermediaries
The rise of AI in insurance broking
Published 25 Mar 2024
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“In order to remain competitive in today’s market and maintain the ability to scale while keeping clients’ interests as a top priority, new technologies must be built and implemented”
Shaun Standfield,
Insurance Advisernet Australia
Slated to invoice over $1.8bn in 2024
Client count approaching 140,000
Nearly 300,000 policies
More than 1,300 staff
Net Promoter Score consistently in mid +80s
complaints lodged in
the year to
30 June 2023 for general insurance
Few service issues with insurance intermediaries
15,911
complaints lodged against insurance intermediaries
(less than 1%)
125
Source: Australian Financial Complaints Authority
Of course, some people are concerned about an AI-driven future and what that may mean for everything from jobs to information security.
“It’s very important to reinforce that we are not replacing humans
A future in safe hands
interestingly, it always says, ‘please seek advice on the best insurance programs to suit your business’.”
He sees this answer as evidence of the complexity of the market and the need for bespoke solutions.
“Every business owner thinks they have a competitive advantage over their competitors in the same industry … this is why more and more businesses seek personalised professional advice.”
The value that AI adds to the complexity factor is its ability to see a broader range of possible solutions at once and present them as options in a fast and efficient manner.
“The way we provide our services will change with the growth in AI capability,” Standfield says. “It’s not necessarily a matter of increasing the number of products or players in the market but improving on what we have now.”
Having access to the full universe of solutions available via AI will help more people purchase the right insurance.
There is also a time dividend for advisers. Rather than trolling through multiple options themselves, they will be able to rely on AI to give granular readings of options. This could be comparing two policy wordings or summarising the risk profile for a client, for example.
“AI can process a lot of data in a short time period. In the intermediated space, this will allow advisers more time to spend giving advice to their clients,” says Standfield.
AI perhaps stands to benefit the insurance industry more than many other sectors simply due to the low base that it starts from in terms of technology use. While the pandemic provided some incentive for insurance to up its game, it is still generally seen as a laggard.
Research by McKinsey shows that how quickly incumbents adapt to new technology and related market changes will determine the size of their share in the next generation of the insurance industry.
“In order to remain competitive in today’s market and maintain the ability to scale while keeping clients’ interests as a top priority, new technologies must be built and implemented,” says Standfield.
IAA is going to be at the leading edge of this change and, by extension, so will its advisers.
“Automation is a big part of our technology roadmap … we are looking to replace low-value elements of the broking process with automation or AI to help our advisers deliver better advice more efficiently.”
For example, IAA is introducing tech to allow speedier comparisons between policies.
“We are deploying an AI model that will specifically assist our advisers to compare long policy wordings against each other on the fly … having this available in such an efficient manner creates great value for the insurance process.”
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At IAA, clients are clearly happy with the service they are getting. It has a Net Promoter Score (NPS) consistently in the mid +80s – much higher than the industry average of +21 for broker services in insurance as measured by market research consultancy Evolved Thinking’s Australian B2B NPS industry benchmarks. Client satisfaction scores currently sit at an impressive 95%.
Part of the value that advisers provide to clients lies in their ability to anticipate and respond to trends in both the industry and the economy overall. With inflation proving much stickier than many had anticipated, the issue of affordability in the current market is a case in point. Helping clients navigate such uncertainties is a key role for advisers.
“I believe the position advisers need to be talking about is ‘real value’. Price always matters, but value goes much further – real value finds the perfect balance between affordability and peace of mind,” says Standfield.
Advisers take the time to understand client needs, assess their appetite for risk, and find the right balance between price and value.
Their responsibilities for claims advocacy and making sure clients obtain valuations to ensure they have the right sums insured are also crucial functions of their specialised role.
“Every day, I see examples of where our advisers have assisted clients to navigate claims issues … [or] inform clients of the risks of underinsurance.”
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Insurance Advisernet Australia is a leading network of insurance advisers dedicated to providing tailored insurance solutions for businesses and individuals across Australia and New Zealand. Focusing on professionalism and integrity, IA leverages its expertise and industry relationships to deliver insurance strategies that mitigate risk and protect assets. Our advisers are committed to understanding each client’s unique needs, offering personalised advice and ensuring peace of mind through optimal coverage and efficient claims support. As part of a national network, we offer the strength and buying power of a large organisation, while maintaining the personal touch and flexibility of a local adviser.
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About us
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Terms & conditions
People
Copyright © 2024 KM Business Information Australia Pty Ltd
Contact Us
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Best in Insurance
Resources
Risk Management
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News
AU
Copyright © 2024 KM Business Information Australia Pty Ltd
RSS
Sitemap
Contact us
About us
Conditions of Use
Privacy policy
Terms & conditions
People
Contact Us
Specialty
Best in Insurance
Resources
Risk Management
TV
News
AU