New Study Finds Majority of American Insurance Brokers See Major Industry Challenges of Client and Talent Loss Without Adoption of Automation Technology: LINKITSYSTEMS New data shows 55% of brokers say a lack of technology automation creates significant inefficiencies in administrative tasks, filing claims and carrier communications leading to client and talent loss
NEW YORK
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May 31, 2024 10:14 AM Eastern Daylight Time
LINKITSYSTEMS, a knowledge-driven IT partner specializing in solving IT challenges for insurance companies, found in a new data study of American insurance brokers that 55% stated a lack of sophisticated technology to automate administrative tasks like filing claims, underwriting and carrier communications is the greatest challenge facing the insurance industry. More than 65% of brokers said the business consequences of not utilizing technology to streamline these processes would lead to a lack of customer satisfaction, loss of customer base and a potential loss of talent to more forward-thinking brokerage firms.
“This data is a wake-up call for an industry lacking true differentiation. Insurance companies, more or less, offer similar products and solutions to their customers,” said Jimmy Iliohan, vice president of North America at LINKITSYSTEMS. “Speed and efficiency through advanced software can become the greatest differentiator for insurance brokers. By leveraging advanced technology like low-code platforms, brokers can rapidly implement new solutions for self-service intake platforms or automation in underwriting or claims processing. Brokers can service the needs of more clients while focusing more energy on the customer experience, thus truly differentiating themselves from their competition.”
The study, which surveyed dozens of insurance brokers and executives across the country, also found:
1 in 5 brokers feel a lack of skilled talent is the second greatest challenge facing the insurance industry behind a lack of technology
Regarding the day-to-day work stream, more than a third of brokers are concerned about their customer’s experience through the inefficient underwriting and claim process
A quarter of brokers would like to leverage technology to improve communications between carriers and customers alike
The insurance industry spends the largest part of its IT budget on Underwriting, followed by Claims, Customer Service, Administrative Tasks and Communications, respectively.
“While brokers are shouting for tools and solutions to help them do their jobs more efficiently, technology isn’t a cure-all,” said Iliohan. “Technology can certainly help create the state of urgency needed to increase margins and customer satisfaction, however, our data directly points to a strong concern for a lack of skilled talent in the workforce. As companies invest in technology, it will be equally as important to invest in internal education focused on customer service to build a sustainable pipeline of customer and new business.”
About LINKITSYSTEMS: A knowledge-based, full-service IT provider, with more than 25 years of experience in developing, designing and managing innovative IT solutions for top 500 organizations and government agencies. With proven knowledge and experience, and with the use of agile teams, LINKITSYSTEMS solves complex IT challenges and provides top-notch solutions in every situation. The company’s expertise specializes in (low-code) application development, enterprise software, data engineering and cloud modernization. For more information, please visit, https://www.linkitsystems.com
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