A recent survey by GlobalData found that price or premiums and the speed of response to queries or quotes are the key factors for insurance brokers when choosing which insurer to place business with. The survey, which focused on the UK commercial insurance market, revealed that 28.4% of respondents considered price or premiums as the most important factor, while 8.8% prioritized the speed of response to queries or quotes. This highlights the need for insurers to balance competitive pricing with operational efficiency and responsiveness.
To remain competitive, insurers are embracing digital transformation to modernize customer journeys, streamline back-office operations, and offer competitive pricing. Aviva’s partnership with ICE Insurtech is a notable example of this trend. By implementing ICE’s policy administration system, Aviva was able to streamline its operations, reduce quote turnaround time by half, and cut IT costs. These cost savings were then passed on to customers in the form of lower premiums, resulting in improved customer satisfaction and retention.
The survey findings suggest that insurers who can effectively leverage technology to reduce operational costs can gain a competitive edge by offering lower premiums to customers. However, digital transformation is not just about adopting new technologies; it requires a fundamental shift in how insurers approach their business models. Insurers that can modernize their operations, enhance customer journeys, and offer competitive pricing will be well-positioned to thrive in the coming years.
The case of Aviva serves as a compelling example of how strategic partnerships and technological investments can yield significant benefits. As the insurance landscape continues to evolve, insurers that prioritize customer-centric solutions and deliver both competitive pricing and rapid response times will be better positioned for success. Ultimately, insurers must be willing to adapt and innovate to meet the changing needs of their customers and stay ahead of the competition. By doing so, they can build strong relationships with brokers and customers, drive business growth, and maintain a competitive edge in the market.