The Ontario Broker - February 2018 - 7

THE ROAD TO
BROKER DIGITAL
ENABLEMENT

O

ver the past decade, how we
interact with one another has
changed dramatically. I now receive
text messages from many of my
service providers reminding me
of appointments, allowing me to text back if I need
to make a change. I adjust my travel plans based
on transit authority updates, something I consult
before leaving the office. I select meal options, pay
online, receive by delivery without ever speaking to
anyone on the other end, and track whereabouts as
they make their way to my location.
As the world advances, some will always resist
new ways of doing things, but most adjust
their expectations just as rapidly as technology
develops. So how do we address these technological
advancements as brokers?
We know the broker value proposition within
the insurance industry is significant - 80 to 90%
of premiums from most of the larger insurance
companies continue to come from broker
distribution.
As schedules become more hectic and specialists
increase in value, consumers truly embrace the role
trusted advisors play in society - millennials now
leverage experts more than any other generation.
Consumers want omni-channel engagement. So as
brokers we must make ourselves available by text,
phone call, app, website, social media and in-person.
All these touch points create more data, which
as brokers we must readily access and leverage to
not only create efficiencies internally within our
brokerage, but to connect with our clients in more
meaningful ways.
We've been thinking a lot about how best to
approach the topics of data collection and consumer
communication within the broker channel. Last
year we made technology and broker digital
enablement a focus alongside broker advocacy and

WWW.IBAO.ORG

COLIN SIMPSON, IBAO CEO

education, and consumer awareness of the broker
value proposition.
We started by collecting all the information we
could access on the many solutions technology
providers have brought to market to help brokers
become more digitally enabled in connecting with
their clients.
Through the data we gathered and our discussions
with both brokers and technology vendors, it
became clear that although software solutions
are pivotal to broker digital enablement, the data
clients are looking for often resides with insurance
companies, not brokers, and isn't easily accessible. A
number of insurance company solutions have been
established to help bridge this divide, but without
a coordinated effort, the accessibility problem isn't
resolved.
To service clients digitally, a broker needs access
from within their technology ecosystem to data
from their various markets. This problem certainly
isn't new - the insurance industry recognises that
data interchange has been a significant hurdle for
decades, and insurance companies recognize it
shouldn't be a competitive differentiator.
It also isn't new that a coordinated approach is
required in order to provide a solution. So we
approached 15 insurance companies to request
their participation in a detailed market survey
addressing a more modern method of interfacing
data across our landscape: insurance company to
broker technology vendor, to broker, to consumer.
The response has been very positive. In terms of
data services that insurance companies are currently
focusing on, there's great symmetry. It's clear that by
bringing everyone together on data interchange, we
can digitally enable all brokers.
We've been laying out the ground work to make this
a reality. At this stage we've received enthusiastic

7

support by the insurance companies we've
approached, and are working with technology
vendors on coordinated, organized, incremental
delivery of data that will allow brokers to provide
modern services their customers want. Let's use
as an example the exchange of information from
insurance companies to brokers on the status of
claims handling: receiving details directly from
your BMS or customer self-service application
will allow you to proactively provide information
to your clients, or provide self-service should your
clients choose. Another example is making billing
details and scheduling available within your BMS or
customer self-service application.
The culmination of this technology initiative is an
inclusive model for an industry-owned data hub.
Inclusivity is paramount - the broker channel
will only benefit when all their insurance markets
exchange data through a single hub. Next steps
include a comprehensive Feasibility Study to
round out a roadmap that truly represents what our
industry can do in practical, achievable steps.
So what do we need from brokers?
We need you to embrace change, specifically in
how you conduct business digitally, and find
opportunities within these new workflows to
provide the knowledge and value you already offer
your clients. We need you to put the tools in place,
purchased or developed in-house, to make it easy for
your clients to connect with you in the manner they
so choose. Many of you have worked through the
initial hurdles of technology, for which we applaud
your efforts. To the rest of you, we encourage you to
reach out to the IBAO or to brokers on a technology
path for guidance on how to get started.
As a channel, we must adapt to the times to continue
supporting our clients. As your association, we're
with you every step of the way.

FEBRUARY 2018
http://WWW.IBAO.ORG
Table of Contents for the Digital Edition of The Ontario Broker - February 2018
