What key trends are shaping the future of insurance broking?

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With the future delivery of insurance such a hot topic for brokers right now, Applied Systems has identified the five core trends influencing the future of the insurance market

THE APPLIED SYSTEMS team prides itself on never taking a “build it and [they] will come” approach to their technology solutions, their partnerships, or their client relationships. Rather, notes senior director of customer experience Stephen Murphy, the group operates on the premise that just as critical as getting the technology piece right is focusing on customer experience and outcomes. “We take a problem-resolution approach to working with customers,” he says. “We identify the problems they’re actually looking to solve and then explore how we could solve them. Sometimes it’s not a one-size-fits-all solution, and so we have the ability to flex up and down our solutions and provide different offerings to different brokers.” It’s this open-minded, collaborative approach that allows Applied to take the temperature of the insurance marketplace accurately and see where industry trends are creating new opportunities for brokers. There are five core trends currently influencing the insurance industry, Murphy says, and the first of these is the rapid pace of innovation and technology uptake, particularly over the last few years. “We’ve seen the need to transform manual in-person tasks into digital workflows,” he says. “And we’ve had many customers come back to us about the power of Applied Cloud and our cloud environment and [credit us] with their ability to work from home successfully.”

Applied Systems is the leading global provider of cloud-based software that powers the business of insurance. Recognised as a pioneer in insurance automation and as an innovation leader, Applied is the world's largest provider of agency and brokerage management systems, serving customers throughout the United States, Canada, the Republic of Ireland, and the United Kingdom. By automating the insurance life cycle, Applied's people and products enable millions of people around the world to safeguard and protect what matters most.

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Stephen Murphy, Applied Systems

A second trend is that of M&A moves, Murphy notes, as across the UK the market is consolidating at a pace that hasn’t really been seen before. It’s an exciting time for the larger brokers who are on an acquisition spree, but it also offers regeneration opportunities for new start-up brokerages. Underpinning the solutions Applied offers in this space is its renewed focus on open API technologies – as supported by an expanded partnership with Alphabet’s growth equity investment fund CapitalG. “That open technology and API suite are really making it easier for the integration of systems and applications when people are trying to undertake a merger or acquisition, especially at the pace we’re seeing in the market today,” he says. “Another trend is the drive toward customer self-serve in the marketplace, and we’re seeing how brokers and customers want to balance that.

“Yes, there is a drive to have much more self-serve facility, but I think it’s important it not come at the expense of some in-person work when needed. We’re seeing our customers use this in a very powerful way when they combine in-person experience, when those are needed, with an online experience for simpler workflows and more common workflow tasks.” From an Applied perspective, he says, the move to self-serve has precipitated increased demand for applications such as its Applied CSR24 solution, which offers an online portal for payment and a documentation wallet for the end customer. This self-serve shift ties into the fourth trend Murphy is seeing – changing consumer expectations around how purchasing insurance should look and feel.

“Why should someone expect something different in insurance, as opposed to their banking or buying their shopping online? We are seeing customer experience being set by the likes of Amazon and Uber and others who’ve achieved that simple digital experience,” he says. “And I think it’s key for Applied to offer that to the insurance market.” Last, but certainly not least, of the top trends Murphy is seeing affect brokers centres on data. The industry is understandably obsessed with data, he says, as the collection of data needs to be incredibly rich in order to provide a truly risk-based approach. Applied is responding to its brokers' demands for such data through its existing solutions across the UK market but also by leveraging its Google partnership to invest in new and exciting solutions.

“What we’re doing is giving customers their time back so they can use that to focus on the things that are going to create more value, revenue, and happiness for their business”

Stephen Murphy, Applied Systems

Why the time is right for brokers to question the future delivery of insurance It's a great time to be in the market, as brokers are so engaged with the questions around the future delivery of insurance and are keen to explore any opportunities to invest in their own futures. Applied’s flexibility is what sets it apart when it comes to seizing these opportunities, Murphy says, as the increasingly open architecture of its Applied Epic platform allows customers to adapt rapidly, without constraint. “We are there to provide flexibility and easier access to [allow customers] to integrate quickly with third-party applications so brokers can be in control of their own technical landscape,” he says. “Applied being that gateway is such an important part

Why simplicity truly is the ultimate form of sophistication Another part of Applied’s proposition is simplicity, he says. The firm looks to do things in a simple and ultra-refined way across the entire Applied culture so that its technology creates real ease for brokers, making them more productive and bringing them closer to the customer. “It’s all about trying to simplify how customers contact us and about giving them choice and opportunity,” he says. “And that’s different opportunities to engage and avail [oneself] of each touchpoint with the customer as easily and simply as possible, and to make us easy to do business with. It’s all about reducing friction points along that [entire] customer journey. And at go-live, we become partners, and hopefully partners for a really long time. “What we’re doing is giving customers their time back so they can use that to focus on the things that are going to create more value, revenue, and happiness for their business. We’re looking to be an indispensable partner for our customers, to take away some of their pain so they can focus on what they do best – which is serving their customers’ needs and providing insurance for people in their time of need.”

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IS YOUR DATA HOSTED IN THE CLOUD? (ALL GEOGRAPHIES YoY)

2020

74%

100

26%

81%

19%

2021

Yes

Do you have a digital strategy in place? (All Geographies)

2020

2021

66%

34%

Yes

of what we do, and I think that’s a differentiator in terms of our proposition.” By unlocking intelligence for brokers, Applied supports brokers in moving data in and out of their applications, he says, and you can’t underestimate the value this holds in terms of how this data informs their operations, how they work with insurers, and how they measure themselves. In some instances, Applied’s customers have been able to shift from relying on retrospective data that is weeks old to using real-time data twice a day – a powerful real-life example of what can be achieved.