The Future of the Lloyd’s Broker

by  Ben Potts  |  16 Aug 2019

 A Lloyd’s broker has always been seen as an unrivalled source of trusted advice in the insurance industry. However, with insurtechs now making it easier than ever for clients to go direct to an insurer, brokers need to make the value they provide even clearer.

As a result, the Lloyd’s broker of the future will need to be much more than just the middle man; they will need to be seen as a trusted, indispensable adviser in order to secure their place in the value chain.  

Lack of practicality

Lloyd’s investment in technology has no doubt increased efficiency in many areas, yet many brokers still arrive for client meetings with a briefcase full of documents. This way of working is not only outdated, but also out of step with clients’ expectations and needs.

Today’s clients demand fast and efficient service at all times, yet in order to provide a client with a simple quote, brokers still need to ask numerous questions to obtain all the information they need. And even then, most still struggle to turn the quote around quickly.

The days when clients were willing to tolerate this service are gone. Customers now demand almost immediate answers and also want to be able to make hassle-free adjustments to a policy or a quote at any part of the insurance journey. If brokers want to offer this level of service, they will need to improve the efficiency of the customer experience dramatically.

Real-time technology

The good news is that technology can help brokers make this vision a reality. Without a good relationship with a client, it’s hard for brokers to be seen as a trusted adviser. But adding value is increasingly impossible without technology. Lloyd’s is clearly a highly respected institution, but when it comes to tech, brokers need to take matters into their own hands to drive change.

By leveraging existing customer data, brokers are able to offer tailored advice that goes above and beyond the customer’s requirements. For a start, they can create a 360-degree view of the customer, enabling them to identify cross and upsell opportunities. This is not only good for a broker’s business, but will also improve the customer experience, which is essential for client retention.

Secondly, the use of a technology platform means that all data can be accessed from any device, in any location, at any time. The ability to provide clients with an answer or an update almost instantly is a huge advantage, especially at a time where brokers are under pressure to increase the value they deliver to clients.  

An evolving role

The role of the Lloyd’s broker will always be to provide value to the customer. As long as the customer feels like they are getting value for money, they will remain happy and loyal. To do this, however, brokers will need to make much better use of existing customer data.

As more and more data becomes available, technology can help to distil it down so that brokers can derive actionable insights from numerous data sets. Armed with this knowledge, they can provide the highest possible value to the customer and go above and beyond the competition.

The Lloyd’s broker will always have an integral role to play in the market, but as the insurance industry modernises and becomes increasingly customer centric, they will need to embrace the benefits of real-time technology in order to maintain their role as trusted advisors and cement their place in the value chain.