By: Luke Jones, Published on October 31, 2017 02:25 PM, Last Update on October 31, 2017 11:27 AM
The future of the broker network is uncertain as the industry is challenged by insurtech, direct-to-consumer solutions, and changing business climates. RSA Canada is the latest insurance carrier to confirm its continued support to the broker channel, saying it has a “bullish commitment” and will maintain investment.
Despite many insurance companies pursuing other distribution methods, RSA says it writes around 70% of its business through brokers. The company says it has made investments and provided technology to ensure the channel continues.
“We believe that the broker channel has a big role to play in the future. A lot of our investment has gone into helping us make sure we are a good partner to our brokers so that we can serve them well and they can then do a good job for their customers,” said Martin Thompson, president and CEO of RSA Canada.
“Our vision is about being an outstanding partner for our brokers. We are not going to be a competitor in owning broker distribution; our focus will be on winning by being the best company for brokers to deal with.”
Insurance brokers are a customer doorway into the insurance industry, a connection between consumer and carrier. It is in a broker's interest to get the best for the customer, but increasingly customers are making different demands, while carriers are increasingly seeking direct channels to consumers.
RSA Canada says customers have more power thanks to the democratization of information. “Our brokers are asking for the same efficient, transparent and cost-effective solutions as the insured customer,” Paul MacDonald, senior vice president, Claims & Chief Claims Officer told Insurance Business. “[We are] working on meeting changing customer demands via intelligent and transparent insurer to broker to customer transactions.
“We are also advancing several core capabilities to enable us to deliver best in class customer and broker experience and efficiency – through initiatives such as customer journey mapping, analytics and pricing sophistication models.”