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Insurers to brokerage invest in the digital and are placing big bets on the dealers

by

Hubert Roy

April 10, 2018 07:00

Martin Thompson, Tom Reid and Tom Reikman

For RSA Canada, Aviva Canada and Economical Insurance, the brokers have their place in the new digital environment. They invest massively to allow brokers to perform.

At RSA Canada, the reflection was begun in 2013 and 2014. The insurer recognized that it needed to change its ways if it wanted to remain relevant.

«There continues to be an insurance company, said its CEO Martin Thompson. We can no longer simply look at what we have done, which has been a problem for us. It took a question to understand that it was our importance for dealers and consumers. This is not something that is done overnight. It had to be more relevant. So we speak more of the expectations of the client and brokers. «

RSA has therefore reviewed its technology platform. Like many insurers, it did appeal to the california firm Guidewire to provide a modern platform. Various sources have confided to the Journal of insurance that Guidewire engaged in a hot fight to another firm, called Duck Creek, to obtain the favors of the canadian insurers and as well win some lucrative business contracts, which amounted often in the millions of dollars.

Mr. Thompson said that the technical foundations of RSA Canada are now in place. «Our investments in digital are making sure that we have the tools and capacity to contribute to the success of the brokers. We must see how to offer them a better service. If the dealer offers good service to its customer, you should be able to properly answer him. This is also a plus if we can allow the broker to spend more time with his client by the technological innovations that we put to his disposal. «

The reflection of the RSA is now continued at the level of the analytical. The insurer wants to see how it can provide more knowledge to the brokers, with the aim of helping them to better understand the behaviour of consumers.

The break is not yet there. Will come ?

For Mr. Thompson, the famous break (rupture) as announced in insurance has not hit yet. It does not mean, however, that it will not happen, » he said.

«We grew up with what we have done numerically. We are focused to be the best for brokers. There are still a ton of things that we could do better. We need to come to be more sophisticated. Despite the rise of direct distribution, we believe strongly in the RSA that there will be room for a strong brokerage network, » says the CEO of RSA Canada.

Inevitably, technology will continue to evolve, » said Mr. Thompson. The focus should be to facilitate the process. «The broker must come to spend more time advising their customers «, he said a second time during the interview.

Multiple ads at Aviva

In the last six months, Aviva Canada has stepped up the ads in link with the digital. The most recent are the launches of Aviva Express, which allows you to send a complaint in the automobile by the means of a smart phone, and its application ProNavigator for the engine assistance at home Google Home.

These launches follow the announcement of his association with OneEleven to finance start-ups, or even his partnership with Outdoorsy, a platform for rental of recreational vehicles. Aviva has also become the largest insurance company in Canada of Lyft, the main rival ofUber, and Tesla in Canada.

All these actions are a result of the vision set out three years ago by Mark Wilson, president and CEO of the headquarters of Aviva in the Uk, says Tom Reid, executive director, brokers, digital, Aviva Canada. The Journal of insurance, is maintained with the latter.

The vision of Mark Wilson’s very simple, » said Mr. Reid. It can be summed up in two words : Digital First (digital first).

«The world has changed. We need to change also. Everyone uses smart phones and digital tablets. It is necessary to adapt to this, while taking into account that it is impossible to know what will be the tools of choice in ten years. Things change really quickly ! Therefore, we need to try things, » said Mr. Reid.

He says that Aviva Canada has been contacted on a daily basis for proposing new applications and features. «It retains several and one must choose. It is necessary to satisfy the need of the customer, » he said.

Categorize brokers

Mr. Reid said that brokers are already well into the new digital universe. In Quebec, he quotes Club Insurance. Outside of Quebec, and he gives the example of Sharp Insurance. It is estimated that approximately 10 % of the number of brokerage firms who have performed acts that allow them to succeed in this environment, the insurer would like to contribute to that number climbs to 30 %.

To the point that Aviva has categorized the brokers with which it deals. After the 10 % that is already well engaged in the digital world, comes another 20 %, which is on the point of taking actions in this direction. As well, Aviva, is estimated treat with 250 firms without this situation, out of a total of 1 300. Within three years, she wishes that 400 of these firms are well positioned in the digital.

What is the future for the other ? Mr. Reid pointed out that several of them are at a crossroads. He believes that many brokers are so-called traditional will well of by their specialties or their geographic positioning.

«The others will have difficulties. They will decay or will be sold. Half will fare well, » said Mr. Reid.

The advantage of having a head office abroad

Mr. Reid is also said to have an advantage over some of its competitors by the fact that the head office of Aviva test things. Its canadian subsidiary, therefore, has not in the retest, in contrast to most other canadian insurers. «We can return on our investment more quickly,» he said.

What is lacking in the canadian market, he said, is a standard. It is for this reason that Aviva has joined the process of uniform transmission of a transaction of insurance for the brokerage of the Centre for the study of the practice of insurance operations (CSIO), jointly with RSA, Wawanesa and Economical. «The brokers will be more effective,» he said.

Battle on two fronts to Economical

Economical insurance is also in the process of transformation. In addition to better position themselves in a digital environment, the insurer also leads to front its demutualization, a process that began in 2011.

Despite the efforts to put on its two fronts, the insurer has just launched its platform Vyne, from which it will deal with brokers in their day to day activities respective. Economical made use of Guidewire to develop this system, learned of the insurance Journal.

The deployment of this platform, which will run throughout 2018, will also cause other changes in Economical. The insurer will take the opportunity to review the overall pricing as it applies in the brokerage. Brokers can therefore expect that Economical to put to their offers more competitive, » says its head of distribution Tom Reikman.

«There is a structure with a system that allows brokers to operate the way they want. It is necessary to come up with at the brokers have a habit of dealing with us. They must find what they are looking for on-the-field. With Vyne, this is what they will have, directly in their broker management system. It is in this way that we will create a good flow of work with them, » said Mr. Reikman.

Regain some of its former glory in Quebec

Quebec will be the subject of a special attention to Economical. There are a dozen years, during which the insurer exercised through its subsidiaries, The Federation and The Missisquoi, the Company had a volume of almost$ 270 Million in Quebec. He turns it now around$ 100 Million. The opportunities to grow are there, he Reikman.

After having recruited Glen Bates to lead its operations in Quebec, the insurer has recruited Michel Chevalier to ensure business development. It is a return for Mr. Chevailer, who has already worked for the Company. He said to observe a drastic change in what the insurer expects to make in Quebec.

«The brokerage quebec is in lack of options, particularly in terms of the ease of doing business with brokers. This is the message that I want to bring to dealers of Quebec. «

Economical also says much focus on its business strategy, as Fabian Richenberger, vice-president in the insurance business, has concocted. The insurer is preparing the deployment. «We want to become a significant player in this niche market, particularly in Quebec. «

Michel Chevalier will also have to communicate the new capabilities of the insurance in insurance companies, which have greatly increased. He argues that these capacities can go up to$ 60 Million in risk skilled of type A1.

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