E-Trading and the Commercial Broker
Insurers and brokers remain apprehensive about the use of technology. While personal lines have begun to accommodate more tech-based platforms, insurers are afraid this will increase competition within this space, resulting in profit margins being squeezed. Conversely, brokers are failing to realize the benefits of technology and the increased efficiency tech-based platforms can bring.
Reasons To Buy
- Identify how brokers are utilizing technology for the distribution of commercial insurance products.
- Gain an insight into the methods and platforms used by brokers to access products.
- Discover how the e-trading model will develop over the coming years.
- How does e-trading drive efficiency in commercial insurance product distribution?
- Which are the best performing e-trading platforms?
- How can brokers develop e-trading platforms to host a greater range of products and serve markets outside the micro enterprise space?
E-trading is a modern form of commercial insurance distribution designed for the sole purpose of improving efficiency in the product distribution process. Brokers can obtain comparative quotes from a panel of insurers across an expansive range of products with the single entry of a customer’s data into an e-trading platform.
Brokers are unquestionably becoming savvier about their e-trading. The adoption of e-trading is becoming more widespread as an increasing number of firms begin to move business into these channels. We’ve already seen a significant shift towards the concept of e-trading, and in various different forms. The use of software houses is one of many.
- Executive Summary
- E-trading is becoming more widespread but brokers remain apprehensive
- Key findings
- Critical success factors
- Brokers Against the Machine
- The use of technology in commercial lines and driving efficiency
- E-trading is evolving slowly
- E-trading is designed to increase efficiency
- Adoption by brokers is slow but investment is increasing
- The development of e-trading has been a gradual process occurring in stages
- There are a number of challenges to overcome
- Brokers largely remain reluctant to adopt e-trading
- The speed-bump of tradition must be overcome to meet customer expectations
- E-trading remains a realm for smaller, packaged business rather than complex products
- SME insurance products dominate online and e-trading platforms
- Complex products such as cyber cover are rarely e-traded
- Clarity of insurance issues is important for "unsophisticated" businesses
- Brokers need to consider how they can provide the capacity to support SMEs
- Brokers must be careful to ensure unsophisticated businesses understand their cover
- GWP transacted across e-trading platforms is small
- AXA is driving for further growth with Connect
- Zurich is looking to challenge the established SME e-trading insurers
- Aviva's Fast Trade remains a highly popular extranet service
- Broker views are changing
- Brokers expect to see much change in the online trading space over the next few years
- A Longstanding Concept
- The different types of e-trading
- Brokers moving to software houses will mark the biggest shift in e-trading
- Our broker survey found that Aviva has the best performing e-trading platform
- A few areas require improvement from software house platforms
- Extranets remain the first port-of-call over multi-insurer platforms
- Customer demand for agile business practices will make e-trading difficult to bypass
- Enter the comparative quotation systems
- E-trading has become simpler due to software houses offering comparative quotes
- Polaris UK facilitates an electronic marketplace for commercial insurance via imarket
- PowerPlace offers commercial insurance products that can be accessed through a secure extranet or via integrated software
- Table PowerPlace caters to three different types of clientele/risk
- Acturis provides efficiency benefits for brokers and networks of all sizes
- The Future of the Electronic Trading Platform
- Predictions for e-trading and what this means for the customer
- How can brokers take the e-trading platform beyond its customary markets?
- Converting legacy business will be the next challenge
- Larger risks will not be e-traded for many years to come
- Abbreviations and acronyms
- Verdict Financial's 2015 UK Commercial Broker Survey
- Further reading