Brokers and insurers must streamline the process of transmitting clients’ information, Steadfast MD Robert Kelly says.

He told the Finity niche insurer conference in Sydney that more automation is needed to let brokers respond to increasing cost pressures and changing market conditions.

“We need to do business smarter and more efficiently but at the same time mitigate the risks,” he said.

Mr Kelly says better use of technology will cut the cost of business for brokers and insurers but automation will not replace relationships or discussion with clients.

“The role of the broker is to have a personal and direct relationship with the client and that would not change,” he told insuranceNEWS.com.au. “But the role of marketing the client’s information – the information required to place business – from client to broker and broker to underwriters who may bid for the business needs to be automated.”

Mr Kelly says data will become crucial over the longer term and US insurers make much better use of their data banks to select and price risk.

He says Australian brokers’ staff costs are increasing rapidly.

When he started in insurance 40 years ago wages were 25% of the cost of production compared with 55% now, while commissions were 30% but have fallen to 20%.