Technology is equipping insurance brokers with data-driven tools to identify risk hazards, enabling more robust risk conversations with customers and optimising face-to-face sales, Capgemini says.

Steadfast’s new iProfileRisk service, which equips brokers with strong data evidence when making risk and insurance considerations, is an example of technology augmenting conversations by identifying exposures by geographic locations and operational activities, according to Capgemini.

That tool helps brokers show their clients the most prominent risks aligned to 12 classes of insurance as well as a NatCat risk grading summary of the likely severity of a loss.

Capgemini says the future lies in this “digi-intermediation” – in which brokers are digitally empowered while virtual channels are humanised – and this will eliminate distribution gaps and improve the customer experience.

Local Senior Director Insurance Practice Daniel Rademeyer says distribution channels offering direct human interaction are good at providing advice while digital channels are great at delivering convenience to customers.

“In terms of reach with customers, the new digital intermediaries have that as their forte,” he said.

“None of the channels are effective alone and thus digital retooling of channels is essential to uplift the success for the insurer of the future.”

Leveraging technology using AI and data enhances the effectiveness of these channels and Capgemini recommends insurers fast track channel digitisation while empowering human engagement via technology for the most effective sales model.

“Reinventing their operating ecosystems and evolving the physical model into a more digital model will increase the growth and expansion of these channels,” Mr Rademeyer said.

Future leaders in the insurance market will prioritise a shift from product-centric distribution to embed insurance services in customers everyday life, he says.

“The insurance landscape is changing and the need to be more relevant within customers lifestyle is becoming a greater driver.”