AI Tipped as ‘Next Growth Area’ Despite Lack of Broker Investment Skip to content
 

Tech Adoption

2 Minute Read

AI Tipped as ‘Next Growth Area’ Despite Lack of Broker Investment

By: Stephen Murphy

Tech Adoption

2 Minute Read

AI Tipped as ‘Next Growth Area’ Despite Lack of Broker Investment

By: Stephen Murphy

 
 
 

Digitisation has become a necessity for brokers. And yet, many brokers continue to lag in the adoption of technology. According to the Insurance Times Digital Adoption Report, produced in association with Applied Systems®, less than half (45%) of brokers have invested in IT cloud infrastructure. This figure is only marginally up from last year's 41%. The survey also reveals that 45% of brokers have no plans to invest in artificial intelligence (AI) technology, and only 2% have completed it.

The survey also identifies two areas - broker management systems (BMS) and customer service - that have contributed to the most business growth over the last 12 months. I am not surprised that broker management systems have contributed to 45% of the business growth. For customer service, the growth is split across marketing (43%), data and analytics insights (43%), customer relationships tools (24%), and self-service (10%).

“I think Al will be moving up to the top in terms of investment for growth."

The survey also indicated cost as the primary obstacle for brokers when it comes to adopting new technology. This was followed by concerns about disruptions to existing business processes and a lack of innovation from software companies, ranked as the second biggest barrier at 22%. Based on feedback received last year about our onboarding processes, we have streamlined them and now offer more implementation options, better training, and faster onboarding for brokers looking to adopt Applied Epic®, our cloud-based broker management system.

Technology does not necessarily mean depersonalisation but can instead enhance business processes. I do not believe that investing in AI will lead to robots taking over the customer experience and making it impersonal. On the contrary, technology can enable your employees to focus on human interaction by taking care of administrative tasks. Some people think technology reduces the customer experience and human interaction, but that is not necessarily the case. By maximising your technology, you can spend more time on essential tasks like choosing the right projects and having personalised conversations instead of just doing mundane and repetitive tasks.

“Perhaps there is the thinking that the customer experience and human interaction are reduced by technology."

At Applied Net, our annual broker conference, CEO Taylor Rhodes touched upon generative AI and the opportunity we all must use to learn more, create more value and work on the most important things. He said, “Generative AI is a powerful new chapter in the evolution of insurance technology, enabling us to know more, spend more time on higher value tasks, and serve our clients better. It presents powerful new ways for us, as your partner, to make our products more valuable for you. We promise to be your partner in making AI advancements valuable for you and do it smartly, safely, and responsibly.”

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  • Stephen Murphy

    Senior Director of Customer Experience, Applied Systems Europe

    Stephen Murphy is responsible for the overall client experience and satisfaction of Applied Europe’s strategic customers. A customer champion, Stephen leads a team of Customer Success managers and works in collaboration with Sales, Services, Support, Development and Product Management, placing customer experience at the centre of all operations. He joined Applied in March 2020 and works across both broker and insurer channels ensuring our customers gain the most value possible from their investment in Applied technology. In his previous role at Accenture, Stephen worked in Management Consulting where he specialised in insurance consulting, managing teams across Europe and Asia Pacific to deliver large scale transformational projects for larger insurers in the UK and Ireland.

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