APPLIED DIGITAL BROKER ANNUAL REPORT
2021 Digital Technology Adoption Survey: Key Insights
Brokers accelerated their digital strategies.
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Brokers accelerated their digital strategies.
Having a digital strategy is becoming universal in the insurance industry. 66% of all brokers across the geographies surveyed have a digital strategy in place. 86% of brokers who responded to the survey plan to implement their digital strategies within 1 to 5 years. The highest digital strategy adoption rate – 83% – was among brokers with revenue over £25M and brokers with revenue of £10M–£25M. The lowest adoption rate was 55% for brokers with revenue of less than £1.25M.
Most brokers have a digital strategy
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Management systems have more to offer.
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Brokers aren’t using these types of tech enough.
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The pandemic changed how brokers work.
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This untapped resource could provide big insights.
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Customers want 24/7 access and brokers listened.
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This year’s digital technology adoption rate among independent brokerages is…
A digital strategy is essential for brokers today. The lasting effects of the pandemic moved more business online and the insurance industry is no different. By focusing on how to use technology to create a competitive edge, brokers can improve how they communicate with their customers and employees, work more efficiently, and most important of all, increase profits. Digital strategies allow brokers to reimagine how they do business through innovation.
A digital strategy is essential in a digital world
Do you have a digital strategy in place? (All Geographies)
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A digital strategy is essential in a digital world
Do you have a digital strategy in place? (Percentage of brokers from all geographies responding "Yes" by brokerage revenue)
How far ahead is your digital strategy focused?
Do you have a management system? (Percentage of brokers from all geographies responding "Yes" by brokerage revenue)
Do you have a management system? (All Geographies YoY)
With nearly 100% adoption across all regions surveyed, broker management systems are one of the most used pieces of technology in the insurance industry. Despite this high adoption rate and the robust functions management systems are capable of, not all management system capabilities are used to their full potential. Compared to the 81% of brokers who use the system for accounting and financial reporting and 76% for complete visibility into all departments within one system, the survey found only 24% are using integrated SMS messaging in their systems at present.
Management systems CAN do it all, but brokers don’t use it all
Management systems have more to offer.
The must-have tool for a successful broker business
Management systems eliminate the complexities of using multiple, disparate systems. They combine the functions of multiple essential programs and applications to become a single, integrated system that is cost effective and highly efficient. They are an indispensable tool that help brokers manage customer relationships, administer policies, automate sales, process accounting, and manage documents. Brokers who use this technology enjoy standardised workflows, seamless connection to their insurer partners and the easy discovery of new business opportunities from both current and prospective clients. Management systems are, and remain, the foundation of any successful independent insurance broker business.
The must-have tool for a successful broker business
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Management systems are a single, integrated application that allow brokers to manage and maintain a clear picture of their entire business across all roles, locations and lines of business. Easily accessible to any person in the organisation, it keeps the front office sales team connected, automates back-office operations and integrates with customer service and insurer connectivity technologies. A foundational management system manages all aspects of the business including both personal and commercial lines of business; sales automation, market access and quoting, insurer connectivity, data analytics, customer service technology, marketing automation, and more.
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Do you use a standalone CRM/sales automation application? (All Geographies)
Of the geographies surveyed, 85% of brokerages do not use a stand-alone CRM sales automation application. 72% of brokers are not using a stand-alone marketing automation application, however adoption is up 3% from 2020. Brokers with revenue exceeding £25M are the highest adopters of sales automation (49%) and the highest adopters of marketing automation (56%). Brokers with revenue less than £1.25M are the group least likely to use either technology.
The sales and marketing automation runway remains long
Brokers aren’t using these types of tech enough.
Only opportunity awaits
Automating sales and marketing can be an integral part of a new digital strategy. By automating these processes, a broker can quickly and easily stand out from their competition. And early adoption of these tools can make significant impact in the market. These capabilities are not reserved for large, high-revenue brokers, they can be advantageous to businesses of every size.
Only opportunity awaits
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Sales automation streamlines a broker’s sales pipeline and helps manage the complete customer lifecycle. Working in tandem with the management system, it provides a singular view of prospects and customers to both sales and service staff, making it easier to manage sales and drive higher renewal rates.
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Canada Brokerage Score by Employee Bucket
Canada Brokerage Score by Revenue Bucket
Global Average Digital Score
44% is the average rate of digital technology adoption among independent insurance brokerages across all geographies surveyed in 2021. The findings are based on responses to a set of questions about broker technology use based on five core competencies of a digital broker, including management system capabilities, mobile, insurer connectivity, data analytics and cloud software. Brokers scoring 80% or higher across all core competencies were considered to be digital businesses, having adopted most of the key drivers of digital transformation.
Digital adoption remains steady
This year’s digital technology adoption rate among independent brokerages is…
Digital brokerages experience greater returns
Digital brokerages have the core capabilities needed to manage all sales and servicing workflows, online customer interactions and insurer connectivity, plus open architecture to support easy integration of third-party technologies to augment automation at each stage of the customer lifecycle.
The right tech stack gives brokers the flexibility to integrate technology applications to increase automation and simplify workflows across all roles, deliver a digital customer experience, and create a competitive advantage. When technology eliminates mundane tasks, brokers are free to spend their time generating revenue and servicing clients to foster customer loyalty and increase renewals.
Digital brokerages experience greater returns
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Digital brokerage technology includes a foundational management system; the cloud; sales and marketing automation tools; self-service portals and mobile apps; and data analytics. The integrated technology connects brokers, insurers, current policyholders and prospects. Key benefits of digital broker technology include more efficient operations, more informed business decisions, better insurer relationships, improved customer service, and accelerated growth and profitability across all lines of business.
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Do you have a client self-service portal? (All Geographies YoY)
Customer self-service portals have seen steady adoption growth year on year. The adoption of customer portals across all geographies surveyed increased from 35% to 38%, a 9% increase year on year. The highest adopters of customer self-service portals are brokers with revenue that exceeds £25M and the lowest adopters are brokers with revenue below £1.25M. More brokers are offering mobile apps to their customers, their adoption rate has increased 18% year on year. 37% of all brokers offer their policyholders the option to submit applications electronically through a customer portal.
Self-service is on the rise
Customers want 24/7 access and brokers listened.
Customers want online access to their policies
A broker branded self-service portal or app gives policyholders the information and resources they need to manage their insurance policies without the help of a broker, anywhere, on any device, anytime of day. They provide enhanced customer service by giving customers the freedom to initiate policy changes and quote new policies online; view, download and print policy documents; and pay their bills online.
Customers want online access to their policies
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Online customer self-service portals and mobile apps allow policyholders to manage their policies autonomously. When customers have the power to manage their own accounts brokers can spend less time with simple, yet time-consuming tasks like taking bill payments, making changes to policies, and sending policy documents. Instead, they can focus on generating revenue for the business. Not only do brokers who offer customer self-service experience more efficiency, but they also see an increase in customer satisfaction. An investment in customer self-service technology and mobile apps quickly pays for itself.
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Currently only 30% of all brokers in the geographies surveyed are using data analytics to gain business insights from their management systems. The highest adopters of this tech are brokers with revenue exceeding £25M at 47%, followed by brokers with revenue £10 – £25M at 38%. The lowest adopters are brokers with revenue below £1.25M.
Data analytics adoption is slow but steady
This untapped resource could provide big insights.
The powerful potential of data
Knowledge is power and data is knowledge. By leveraging the data that management systems are already mining, brokers of any size can benefit by gaining clear insights into the success of their business. Data helps to identify places where the broker can grow and where there is room for improvement, strengthening the entirety of the business. Thanks to developments in technology, it has never been easier to access and leverage data to make more educated business decisions.
The powerful potential of data
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Data analytics take the data from a broker’s management system and use it to give insights into key performance indicators for their book of business, employee operations and insurer relationships. Data storage is simpler using datalake architecture. It collects data from multiple sources to provide comprehensive analytical insights for brokers with a few clicks. Once this data has been visualised into a dashboard, it can effectively help to identify sales opportunities such as cross or upselling and which customers are most likely to engage.
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Is your software hosted in the cloud? (Percentage of brokers from all geographies responding "Yes" by brokerage revenue)
Is your data hosted in the cloud? (All Geographies YoY)
Cloud technology is how 81% of brokers across all geographies host their software in 2021. Year over year, these numbers continue to climb in the surveyed geographies, with a 9% increase of adoption in the past year alone. Brokers with revenue of £10M – £25M are the highest cloud adopters at 88%, followed by brokers with revenue £2.5M – £4.99M at 86%. Companies of all sizes continue to move to the cloud, and for good reasons. Hosting in the cloud is more secure than ever and makes working remotely easier for independent insurance brokers.
Cloud technology reigns supreme
The pandemic changed how brokers work.
It’s all about mobility
The adoption of mobile applications for employees is on the rise. Up 11% from last year, more and more brokers are giving their employees easier access to essential software needed to run their businesses, like connecting to the management system, from outside the office. These applications allow brokers to work from various devices and give them more freedom to work from anywhere.
It’s all about mobility
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Cloud computing is an application-based software infrastructure that stores almost unlimited data remotely, allowing it to be accessed anywhere, anytime. A cloud platform purpose-built for insurance business provides a flexible operating environment that scales for business growth, stronger business continuity protection and increased mobile access to business information.
Mobile applications, or apps, are computer programs or software that can run on a mobile device like a smartphone or tablet. The increased accessibility it provides allows insurance brokerage employees to access and manage customer, prospect and overall business information when they are away from the office.
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Do you use a standalone CRM/sales automation application? (Percentage of brokers from all geographies responding "Yes" by brokerage revenue)
Do you use a data analytics tool to gain business insights from your management system data? (All Geographies YoY)
Do you use a data analytics tool to gain business insights from your management system data? (Percentage of brokers from all geographies responding "Yes" by brokerage revenue)
Do you have a client self-service portal? (Percentage of brokers from all geographies responding "Yes" by brokerage revenue)
About the Survey
1,819 independent brokerages across the UK, Ireland, U.S., and Canada participated in the 6th Annual Applied Digital Broker Survey, from which the results of this report were generated. Respondents voluntarily participated in an online survey conducted in Q1 2021. The findings are based on responses to a set of questions about broker technology use. The responses provided the data to calculate a digital score for each broker taking the survey and identified baselines for technology adoption. The survey questions examined five core competencies of a digital broker, including management system capabilities, mobile, insurer connectivity, data analytics and cloud software. Brokers scoring 80% or higher across all core competencies were considered to be digital businesses, having adopted most of the key drivers of digital transformation.
Broker Revenue
Broker Size
Geographical Breakdown
United States:
Canada:
United Kingdom:
Republic of Ireland:
76%
17%
5%
2%
# of Employees
1-9:
10-24:
25-49:
50-74:
75-99:
100+:
48%
27%
12%
5%
2%
6%
< £1.25M:
£1.25 - £2.49M:
£2.5 - £4.9M:
£5 - £9.9M:
£10 - £25M:
> £25M:
43%
15%
13%
13%
10%
6%
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About the Survey
Foundational Management System:
Sales Automation Software:
Cloud Technology:
Mobile App for Employees:
Data Analytics:
Digital Brokerage:
44%
Foundational Management System:
Sales Automation Software:
Marketing Automation Software:
Cloud Technology:
Mobile App for Employees:
Data Analytics:
Customer self-service portals and apps:
Digital Brokerage:
44%
When integrated with the management system, marketing automation software helps brokers nurture customer and prospect relationships. It combines the power of targeted content with effective marketing email campaigns that can educate target audiences on the latest news and trends related to the insurance industry.
Marketing Automation Software:
Do you use a standalone marketing automation application? (Percentage of brokers from all geographies responding "Yes" by brokerage revenue)
Do you use a standalone marketing automation application? (All Geographies)
Do you use a standalone marketing automation application? (Percentage of Canada brokers responding "Yes" by brokerage revenue)
Do you use a standalone marketing automation application? (All Geographies)
Is your software hosted in the cloud? (Percentage of Canada brokers responding "Yes" by brokerage revenue)
Digital Brokerage Score by Geography
Can employees connect to the management system from a mobile device? (All Geographies YoY)
Customer self-service portals and apps:
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A truly digital broker leverages innovative insurance software to provide a better customer experience, increase employee retention and grow the book of business. By using a single, integrated system, digital brokers operate more efficiently, make better business decisions, form stronger insurer relationships, enhance customer service, and accelerate growth and profitability. The combination of a foundational management system, the cloud, sales and marketing automation software, self-service portals and mobile apps, and data analytics make it possible.
Digital Broker:
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Which management system capabilities do you use? (All Geographies YoY)
Does your customer portal offer your policyholders the option to submit applications electronically?
Does your organisation provide a mobile app to your clients? (All Geographies YoY)
Which management system capabilities do you use? (All Geographies YoY)
Does your customer portal offer your policyholders the option to submit applications electronically?
Does your organisation provide a mobile app to your clients? (All Geographies YoY)
A truly digital broker leverages innovative insurance software to provide a better customer experience, increase employee retention and grow the book of business. By using a single, integrated system, digital brokers operate more efficiently, make better business decisions, form stronger insurer relationships, enhance customer service, and accelerate growth and profitability. The combination of a foundational management system, the cloud, sales and marketing automation software, self-service portals and mobile apps, and data analytics make it possible.
Digital Broker: