Revealed – Australian insurance brokers’ biggest challenge
Revealed – Australian insurance brokers’ biggest challenge | Insurance Business Australia
Insurance News
Revealed – Australian insurance brokers’ biggest challenge
Report identifies key factors – see if they match your own concerns…
Insurance News
By
Roxanne Libatique
Insurance brokers in Australia are increasingly finding customer service a more daunting challenge than securing coverage for natural disasters or cyber threats, as highlighted in a study by insurtech JAVLN.
The report identified insurance affordability as the top concern for 28% of brokers, narrowly outpacing customer service demands, which 26% of brokers view as their biggest challenge.
The findings stem from a January 2024 survey conducted by Censuswide for JAVLN, involving 500 brokers from small firms across the country.
Challenges facing insurance brokers in Australia
The survey shed light on a competitive landscape where, besides the cost of insurance, the demands of customer service surpassed other significant challenges such as cyber insurance provision (24%) and the industry’s competitive nature (25%).
The “Brokering Change” report from JAVLN revealed that only a fraction (28%) of brokers believe their clients would rate their service 8 out of 10 or higher. Furthermore, nearly a quarter (23%) of brokers reflected on 2023 as a challenging year for client relations, with 24% expressing a keen interest in enhancing their customer service skills in the coming year.
The survey also highlighted the burden of administrative tasks on brokers, with a significant 70% spending upwards of three hours daily on such activities, which include processing and data entry. Additionally, 24% of brokers reported that compliance demands have become more burdensome and time-consuming.
Factors impacting customer service quality
JAVLN CEO Dale Smith shed light on the technological shortcomings that exacerbate the challenge of delivering superior customer service.
“The insurance industry in Australia needs brokers more than ever, but if those brokers have to fight battles on multiple fronts every day, they’re naturally going to struggle to deliver the kind of customer service they’d ideally want,” he said. “When you look at the root cause of most productivity issues in Australian brokerages, you quickly realise it’s a tech problem. Most brokers are lumbered with old clunky technology to do their jobs, which makes managing client and policy information extremely difficult, and in turn makes customer service difficult.”
According to Smith, a notable 27% of brokers are hindered by the complexity of the technology tools available for managing client and policy information, with 23% declaring the current technology infrastructure unfit for the industry’s evolving needs.
Smith advocates for the adoption of modern, cloud-based technological solutions as a crucial differentiator, emphasising the vital role of technology in propelling insurance brokers toward higher levels of service efficiency and client satisfaction.
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