The world of financial services – like many of its industry counterparts, has become digitised.
Customers’ behaviour and expectations have evolved along with this shift, with South Africans demanding the choice and convenience that can be accessed by purchasing products and services online.
As the world becomes increasingly digital, insurance brokers, must establish a strong online presence to reach South African clients and engage in a way that meets their changing needs.
Staying ahead in the age of digital insurance
Mike Glasby, executive head: broker services south at Santam, says an ever-expanding body of research is pointing to the fact that with the subsiding of the post-pandemic rush back to brick-and-mortar shopping, a more omni-channel experience has fast become the norm. Consumers expect to be met where they are. The most recent State of the Connected Customer by Salesforce found that 74% of customers expect to be able to do anything online that they can do in-person or by phone.
The same behaviour applies to the way in which consumers make decisions regarding financial products like insurance. EY’s 2024 Global Insurance Outlook forecasted that 30% of all global insurance transactions will happen in embedded digital channels by 2028. The same study in 2021 found that as much as 84% of small commercial insurance customers prefer to engage with an insurance adviser either via phone or online.
The picture looks similar on the local front, where the majority of local consumers now buy and research insurance products online, according to a report conducted by payments service provider, Stitch Money. Likewise, in the same study, nearly a third of South Africans reported that they select their insurance provider based on their own online research.
For Glasby, these findings are indicative of the broader reach that brokers can gain access to when they establish themselves online. Furthermore, as Glasby elaborates, with so many customers researching and buying insurance online, having a strong presence online has become a hallmark of credibility and trustworthiness. This is true of any brand or business wanting to reach the connected customer – even more so in the case of advice-led businesses like insurance brokerages.
“Clients tend to feel more secure in dealing with a broker that has an online presence, as it indicates that the broker is well established and trusted by other customers. This can be further enhanced if the broker showcases positive customer reviews online. Being digitally established speaks to the broker’s relevance and ultimately, their professionalism,” Glasby says.
Streamlined broker functions
There is also much the digital world has to offer brokers in terms of the efficiency and accessibility of what they do on a daily basis. For example, brokers play an integral role in helping their clients make informed decisions on risk and cover options. They also facilitate the quotations process on behalf of clients, ensuring that their clients can get the cover they need, at the right price.
Another important part of a broker’s role is to support clients through the claims process and serve to assist with and solve any problems that may arise. Insurers also consult extensively with brokers when designing new products or product features. They are therefore an invaluable source of insight on the customer experience and how to improve it.
Many of these duties, as Glasby explains, are made simpler, more convenient and more efficient by online tools and platforms. “In a world where clients expect speed and transparency, having an online presence equips brokers to meet these demands while enhancing the quality of their service,” Glasby says.
A digital toolkit for brokers
Brokers who want to establish an online presence are relatively spoilt for choice when it comes to the many cost-effective tools available to them online. For instance, brokers can utilise digital platforms to quickly request and compare quotes from multiple insurers, reducing the time and effort required for both themselves and their clients.
Claims processes can also be expedited through digital submissions, enabling brokers to track progress and communicate updates to clients in real time. Additionally, online customer relationship management (CRM) systems allow brokers to keep better records of client interactions, making follow-ups and renewals smoother and more personalised.
In addition, by enabling chat features on their website or communication platforms, as well as quick inquiry forms, brokers can cater to customers’ demand for an ‘always-on’ service and 24/7 availability. Virtual consultations also make it easier for clients to get in touch and receive assistance in real time, without having to travel to a physical premises.
For brokers, this means being able to unlock greater reach across more geographical locations. In the long term, having an online presence can become a powerful differentiator in a highly competitive and fast-paced market.