The warning follows a report from product analyst firm, Defaqto, which said the next three years will bring major changes in the home insurance market.
Examining trends in the sector, the report, Changing Policies for a Changing World said: ‘Brokers not able to deal with customers on websites and through e-mails will struggle to survive.’
Backing this view, David Quick, managing director of CETA, said brokers must cotton on to the rapid changes in technological advances. He said: “The stunning growth and future potential of e-commerce is too big to be ignored. Insurance brokers have already seen some of their traditional business ebb away to direct insurers on the internet and they need to embrace technology if they are to survive.”
To help brokers use technology more efficiently, CETA has created its new White Label CETA Premium service that allows brokers to earn commission from online sales.
The service has no significant up-front costs and enables brokers to link from their own website into a quotation, sales and administration service, which can be tailored to fully reflect and build on the broker’s existing brand using colours, graphics and logos. It offers a range of products including household, travel, ASU and commercial insurance. CETA members can access the service free of charge.
Commenting, Alan Lakey, partner at Highclere Financial Services, said: “It is true that intermediaries need to embrace online facilities, but it’s more a case of having no choice. More and more lenders and providers are moving towards online-only submissions. However, while online processes are very good for downloading application forms, so much more needs to be done to make the process seamless and effective.”
