< Back to all news

The modern insurance broker and the impact of COVID-19 – Interview with Hanno van Aarde


This interview with our founder and joint CEO Hanno van Aarde is about the challenges that brokers face in the digital age and solutions to bring about digital transformation. We are especially looking at how due to the COVID-19 pandemic and the ensuing lockdowns the modern insurance broker has to find digital ways of how to sell insurance.

With worldwide COVID-19 lockdowns the business of insurers and especially the insurance broker, many of whom sell face-to-face, has been affected severely.

Hanno, in your opinion, what is the impact of COVID-19 on brokers?

The impact is particularly strong in sales: With the lockdowns of COVID-19, from one day to the other, they couldn’t have physical meetings with their customers anymore and didn’t have workflows in place to support digital distribution. Many of the processes of brokers are manual. So you would see agents – or point of sale persons, how we call them, working the field with manual forms. They would then bring the manual forms to the office where they would enter the consumer data into legacy systems. In some markets, like the US and Hong Kong, the regulation even requires physical signatures.

Moreover, the requirement to work on-site due to outdated infrastructure is also a huge challenge for brokers. These legacy systems are not only old, but also slow and costly. As a result, we are seeing low productivity levels with brokers, especially in emerging markets such as India, Africa and Asia.

The insurance industry has arguably lagged in comparison with other industries in terms of its digital journey. What can you say about the digital journey of the insurance industry?

To put it simply: Customers expect to buy their insurance online by now. Academics refer to the point of mass adoption as the tipping point – the stage of development beyond which there is no going back and when all customers expect to buy insurance online. This was famously explained in Malcolm Gladwell’s book The Tipping Point: “The tipping point is that magic moment when an idea, trend, or social behavior crosses a threshold, tips, and spreads like wildfire. Unquestionably, the 2020 crisis will accelerate the world to the tipping point for digital adoption, as illustrated by the digital insurer:

digital tipping point insurance broker

Insurers and brokers have to act now and digitise their business in order to meet customer expectations and avoid InsurTechs chowing up their customer base and revenues.

If you could give advice on how to successfully digitise, what would that be?
A roadmap for a digital transformation | McKinsey insurance broker

McKinsey did a great research on this that I like to refer to. They summed up ten guiding principles of digital transformation, structured in three phases: 

  • Stage 1: There has to be a clear value defined, the management has to be committed and targets have to be set. The right mindset is key.
  • Stage 2: Launch and acceleration – you need a great lighthouse project. A lighthouse project is a short-term, well-defined, measurable project that can pave the way for other similar projects within the broader digital transformation initiatives.
  • Stage 3, the last stage, is to scale up based on the successes, learnings and also failures of the first projects, applying Lean Startup methodologies such as Build-Measure-Learn. Eric Ries pioneered the idea of BuildMeasureLearn in his book, “The Lean Startup.” It is a learning and feedback loop for establishing how effective a product, service or idea is, and doing this as quickly and cheaply as possible.
From your experience, which challenges do Briisk’s clients face when driving digital transformation forward?

When driving digital transformation forward we are seeing that change always comes with a “Who moved my cheese” mindset. Once, the original cheese – in this case revenue – starts disappearing, there will be people that will very quickly “put on their jogging shoes” and move on to a new approach and another set of people for whom it won’t be that easy and who will wait for “the same cheese” to be presented to them on a silver platter. As Spencer Johnson explains in his classic book about change management “Who Moved my cheese?”:

“The quicker you let go of old cheese, the sooner you find new cheese.”

– Spencer Johnson

We are also seeing low levels of digital skills and an understanding of operating models. For instance, just putting existing products on to a digital consumer front-end won’t sell insurance. You have to create unique and competitive insurance products due to increased transparency online and you have to build strong brands online and apply online advertising budgets to attracting consumers to your website to achieve conversion.

So how do you digitise in practice? How does Briisk solve these challenges and drive digital disruption?

At Briisk we have a Broker solution where the Broker is in the centre – connected to Insurers, Distribution and Customers via the Briisk Instant Transaction Platform or Briisk ITP.

Simply digitise & distribute Insurance with Briisk

Automate the complete insurance value chain, at a lower cost and higher speed than legacy systems with the Briisk ITP.
Get demo

Related Articles

Embedded Insurance: A Game Changer for the Insurance Industry 

In an ever-evolving digital landscape, industries constantly seek innovative ways to enhance their services, and the insurance sector is no exception. Embedded insurance is emerging as a potential game-changer, offering significant benefits to customers and companies. It is not just a trend but a transformation that has already begun to reshape the insurance landscape. What […]

Enhancing Underwriting Management with Data Analytics: Opportunities, Challenges, and Tools 

In today’s fast-paced world, data analytics has become an invaluable tool for businesses across various industries. Underwriting management plays a pivotal role in the insurance sector, and data analytics is transforming how insurers make informed decisions and streamline their operations.  Opportunities in Data Analytics for Underwriting Management:  Challenges in Data Analytics for Underwriting Management:  Data […]

Transforming Insurance Claims Processing Through Technology

In an era of digital innovation, the insurance industry is undergoing a profound transformation because of the introduction of innovative technology. Exploring the impact of technology on insurance claims processing, highlighting the evolution of an industry, and adapting to the demands of the digital age. The Traditional Insurance Claims Process: A time-consuming challenge Historically, insurance […]

The Types of Insurance and Why We Need Them

Insurance is fundamental to our lives, offering protection and security when the unexpected strikes. This article will explore the different types of insurance and their vital roles. We will also delve into insurance history, including the Great Fire of London and the influential figure often credited as the father of insurance, Elizur Wright. Additionally, we will […]

How the Insurance Industry is adapting

The insurance industry, often referred to as the backbone of financial security, serves as a safeguard against uncertainties and risks that life throws our way. As we examine the current state of the insurance industry, it becomes evident how important insurance really is. The industry is undergoing a transformative period due to emerging technologies and […]

The benefits of a cloud-based insurance solution

Insurance companies face the challenging task of effectively managing massive amounts of data while striving to enhance operational efficiency and provide exceptional customer experiences in today’s fast-paced and data-driven world. An effective response to this problem is a cloud-based platform. Interestingly, the insurance sector has seen a notable shift in perception as insurers and their […]

Insurance Technology: Empowering Intermediaries

Insurance intermediaries connect customers with the right products in the rapidly evolving business landscape. However, intermediaries face numerous challenges, including time-consuming administrative tasks and the need to stay productive in a highly competitive market. Fortunately, introducing insurance technology has started a paradigm shift, empowering intermediaries to automate processes, increase productivity, and ultimately boost business revenue. […]

How Technology is Disrupting the Underwriting Management Industry in South Africa

The insurance industry has traditionally been known for its slow, manual processes. But with the advent of new technologies, there is a growing trend towards digitisation and automation in the industry. In South Africa, underwriting management is undergoing a digital transformation, and new technology in the market disrupts the way things are done. Automated Underwriting […]

How payment technology is changing insurance distribution in 2023

What is payment technology?  Payment technology is a system that digitally coordinates financial transactions between two parties using APIs. This is referred to as an electronic payment which can be facilitated via Payment Service Providers (PSPs).  What is a PSP?  “Payment service providers are an important part of the payment ecosystem. For any business that […]

Allianz and Sanlam join forces to form an African insurance powerhouse

Allianz, one of the world’s largest insurers with a century-long foothold in Africa, has joined forces with Sanlam, the continent’s largest non-bank financial services company. The alliance will enable Allianz and Sanlam to combine their existing and future operations in 29 African countries, becoming the continent’s largest non-bank financial services provider. By merging Sanlam’s expertise […]

Get demo

Let us give you an overview of the Briisk ITP and how it can improve your business processes.
+44 1923 750310
Briisk Limited, 27 Old Gloucester Street, London WC1N 3AX, United Kingdom
+91 8008 360077
Briisk Limited, 23, Gokul Brindavanam, Bachupally, Hyderabad, India-500043
+27 83 321 9369
Briisk Limited, 2 Fir Street, Observatory 1st Floor, Block B, North Park, Black River Park, Cape Town, 7925, South Africa
(C) Briisk 2022. All Rights Reserved. 
Sitemap // Privacy Policy // T&Cs 
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram