Brokers have a chance to demonstrate their value to clients who are still trying to understand insurtech and the changes it brings to the market, according AUB Group.

“It’s essential for brokers to begin communicating with clients sooner rather than later,” Austbrokers Network Divisional CEO Nigel Thomas said.

“Working closely with clients to explain the changes in the market and offer ways for clients to navigate these changes will demonstrate the value of a trusted risk adviser.”

As insurtechs become more prevalent, brokers will likely take on a bespoke approach in handling clients’ individual needs, he says.

“Insurtech lets insurers and brokers deliver a more customer-centric experience.

“[Its] use of data and analytics can help keep some clients’ premiums low due to risk-reduction actions, while other clients will have little choice but to pay higher rates.”

Meanwhile, AUB says there are “signs of hardening” in some lines of business.

Huge losses from recent catastrophes in the US will have global implications, but it is too early to say if the local market will be affected through higher premiums.

“In the past, when the market turned, it turned as a whole,” Mr Thomas said. “Now, with a more fragmented insurance marketplace, insurers are increasing premiums in sections where losses are higher and remaining competitive in other areas such as specialty lines.”