Will the Insurtech cause the insurance agents to disappear? -Part C

Part A – https://www.linkedin.com/pulse/insurtech-cause-insurance-agents-disappear-part-kobi-bendelak/

Part B- https://www.linkedin.com/feed/update/urn:li:linkedInArticle:6453476598137131008/?commentUrn=urn%3Ali%3Acomment%3A(article%3A7252785884021484579%2C6453599296427302912)

In part A of the article mention the causing a process of change that influences the activity of insurance agents and broker and will cause them to change or even disappear :

  1. Profit
  2. Regulation
  3. Availability of knowledge
  4. Technological improvements (InsurTech)

In part B I expanded the conversation on the first two issues one is the significant decrease in the profits of the insurance agents and brokers and the effects of regulation on them.

Now I will go deeper and explore how each of these factors affects the agents. Whether and how the technology will lead to the disappearance of most agents from the insurance industry

Availability of knowledge

Technological improvements (InsurTech)

Availability of knowledge – Professional knowledge and understanding of the work processes in the insurance world are one of the significant tools and assets of the insurance agent in his relationship with his customers. Most customers work with insurance agents for these reasons. In the recent years, information has been available, not only in the area of insurance, but the impact on the availability of information about insurance is critical because agents lose one of their significant assets. The ability of customers to purchase insurance and even to get services independently. When the professional information is available to customers on the internet at any time they feel much confidence to operate without insurance agents. In addition to the fact that the information is available leads to the ability of customers to compare insurance products offered to them and to compare prices easily, these factors have a great influence on the agents

Technological improvements (InsurTech) – However, all of the issues that I have mentioned that will have the most impact on insurance agents is the InsurTech, since this area disrupts the entire industry, including insurance companies and customers, and, of course, the activity of agents and brokers. All the issues I mentioned, such as revenue reduction, regulatory impact, and information availability will all be exacerbated by the significant entry into the world of technological improvements. I do not mention only improvements in these operational processes and a significant change in the mindset of the domain. The technology will enable customers to be active in the world of insurance without agents and even in the future without insurance companies at all from purchasing insurance as a group through the simplicity of the products going into underwriting processes and of course the entire process of claims that the insurance agent today has a very great influence

The insurance industry is facing enormous challenges and changes, which will eventually lead to a significant reduction in the number of insurance agents, their merger into large groups, and their focus on professional and complex niche areas where there are considerable significance and necessity to inform the insurance agent’s professional and experience. Just look at what technology and innovation has done to the world of travel agents and how the streaming technology for Blockbuster.

Kobi Bendelak

CEO at InsurTech Israel

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