Design Highlights
- 78% of brokers prioritize insurers with advanced technology for risk placement over those with outdated legacy systems.
- Senior brokers increasingly favor tech capabilities over long-standing relationships with traditional insurers.
- Modern core platforms are essential for brokers seeking efficiency and competitiveness in the current market.
- A significant portion of brokers (31%) express concerns about the integration of legacy systems with new technology.
- Seamless digital connectivity is now a crucial factor influencing brokers’ decisions on insurer selection.
In a world where technology reigns supreme, brokers are making it clear: if an insurer isn’t up to speed, they can forget about getting their business. A recent survey by Guidewire reveals a staggering 78% of brokers consider an insurer’s technology to be a decisive factor in risk placement. That’s a loud wake-up call for legacy players still clinging to their outdated systems. Sorry, but nostalgia doesn’t cut it in this game.
It seems that senior brokers and directors are especially keen on this tech revolution. They’re using technology as a strategic filter, prioritizing it over historical relationships, especially in today’s softening market. Let’s face it—inefficiency is like kryptonite for insurers. Those still bogged down by legacy systems are being left out in the cold. The market is moving at lightning speed, and it’s a two-speed world now, favoring those with modern core platforms.
The survey, which included over 250 brokers, shows a clear trend: the majority are leaning toward technologically savvy insurers. A whopping 78% don’t even want to wait for the Blueprint Two timeline to unfold. They’re forging ahead with their tech strategies, regardless of any integration concerns that 31% of them have about legacy systems. It’s all about building stable, durable core platforms that can handle the demands of modern insurance.
When it comes to AI, brokers are all in. Automating submission intake and data extraction tops the list of use cases at 42%. Enhancing exposure management follows closely at 38%. That’s not just jargon; it’s about making everything run smoother. AI is stepping in to improve efficiency and speed things up, enabling faster underwriting and better broker-carrier connectivity. Who wouldn’t want that? Additionally, brokers are increasingly favoring insurers with strong security documentation as a key criterion for risk placement.
And let’s not ignore underwriting automation. A solid 51% of brokers report that algorithmic or fully digital underwriting is happening right now. Imagine that! Smart follow syndicates are viewed positively by 48% for speeding up placements. Machine learning is even simulating those “black swan” scenarios more accurately than ever. For those stuck in the past, it’s time to wake up and smell the coffee.
Market modernization is no joke. Investment in modern platforms and data connectivity is quickly outpacing the competition. Those clinging to legacy systems? They’re risking their long-term competitiveness. Brokers demand seamless digital connectivity, as evidenced by tech capability being crucial for broker placement decisions. If you can’t deliver that, don’t be surprised when your business vanishes into thin air. Just as insurers offer different policy types tailored to various needs like HO-3 for homes or HO-4 for renters, modern tech platforms must be customized to meet specific broker and client requirements. The future is here, and it’s powered by tech.
