Down under brokers in service strife.

TLDR:

Key Points:

• Customer service is a major challenge for Australian insurance brokers.
• Technology and administrative tasks are significant barriers to providing exceptional customer service.

In a recent report by insurance technology leader JAVLN, it was found that Australian insurance brokers are facing greater challenges in customer service than in providing coverage for natural disasters or cyber attacks. The report, titled ‘Brokering Change,’ delves into the professional and personal challenges brokers face, their views on productivity and compliance, and their struggles and solutions in technology.

According to the findings, meeting escalating customer demands has emerged as a significant hurdle for 26% of Australian brokers, ranking only second to concerns about insurance affordability. Other issues include rising competition, providing adequate cyber insurance, addressing the evolving risk landscape, and attracting and retaining talent.

The report also highlighted that excessive administrative tasks, outdated technology, and compliance adherence are key reasons behind the difficulty in delivering exceptional customer service. Nearly 70% of brokers spend more than three hours daily on administrative tasks, while 24% find compliance adherence challenging and time-consuming.

JAVLN’s Founder and CEO, Dale Smith, emphasized the importance of modern technology in the insurance industry, noting that outdated technology hinders brokers from providing the level of customer service they desire. The research also revealed that many brokers believe a more modern, cloud-based tech setup would greatly benefit their business.

Despite the challenges, a study by insurance giant Vero found that client satisfaction with brokers is at an all-time high, indicating that brokers are performing well amidst complexity. However, there is still room for improvement, with 24% of brokers expressing interest in enhancing their customer service skills in 2024.

The ‘Brokering Change’ report, supported by global research entity Censuswide, surveyed 500 insurance brokers from small firms across Australia, providing valuable insights into the mindset and hurdles faced by the industry in the current year.