Digital technology is transforming insurance distribution, but this does not spell the end for insurance intermediaries, according to Swiss Re.

Its latest Sigma study says the internet and mobile devices are empowering people to find and purchase policies direct, and that in future almost all insurance will be able to be arranged this way.

“A quiet revolution is under way,” Swiss Re Chief Economist Kurt Karl says.

“In many countries the share of premiums accounted for by online sales is still small, but it is rising.”

Technology has given birth to new types of intermediaries such as price comparison websites but there is still a future for traditional intermediaries, the study says.

“Customers will continue to value the personal interaction and expert advice of agents and brokers.

“The challenge for intermediaries and insurers is therefore to adapt their business models to meet the varying needs and preferences of customers, while at the same time keeping the costs of integrating and maintaining multiple distribution channels under control.”

Digital distribution is giving insurers access to huge amounts of information about customers’ wants, needs and behaviours which, combined with new methods of interpretation, has been labelled Big Data.

The information has the potential to revolutionise the way insurance is designed, priced and sold and many insurers are starting to explore Big Data initiatives.

But the study warns that returns from investment in this area are still uncertain.