Insurtech JAVLN says the insurance industry needs to implement better systems to help brokers meet compliance requirements and “focus on their job at hand”.

A survey by the software company found 20% of brokers have accidentally missed a compliance requirement while handling policies for clients, and 21% admit having ignored a compliance requirement to get work done faster.

JAVLN founder and CEO Dale Smith says technology can be deployed to reduce the burden, under which more than two-thirds of brokers surveyed spend more than three hours a day on administration tasks such as processing data.

“I strongly believe the compliance problem is a tech problem,” he told insuranceNEWS.com.au. “Brokerages ought to be looking at equipping brokers with tools that help them meet compliance requirements ‘in the moment’, helping brokers to remain productive and perform at their best.”

JAVLN surveyed 500 Australian insurance brokers and found about one-fifth say compliance is becoming harder and more time consuming; one-third say compliance is one of their most burdensome activities.

About 21% of brokers say compliance is taking valuable time away from customer service, and roughly the same proportion say there are too many things to remember when trying to adhere to rules.

“Compliance is becoming harder to adhere to and when you’ve got brokers being pulled in different directions, the last thing they need is a regulatory spanner in the works,” Mr Smith said. “If we force brokers to make sure that the intricate parts of compliance are met using technology that isn’t up to the task, while also demanding they give the best possible service to clients, we’ll have a burnout issue on our hands very soon.”