The technology powering the protection industry is “embarrassing” and urgent actions need to be taken to keep up with other sectors.
This damning statement was made by founder and director of Protection Guru Ian McKenna today (6 December) at the Protection Review 2023 Conference in London.
Mckenna told conference participants during a panel discussion on “The Great Protection Technology Myth” that the protection sector is lagging behind others in the technology race.
“The technology in our protection industry right now is embarrassing compared to what it could be,” he said.
He said the sector’s outdated technology is affecting growth and innovation. He blamed poor technology adoption and lack of meaningful engagement with mortgage and wealth advisers for the low uptake of protection products.
“We need to stop believing in our own echo chamber and PR. If we look at technology elsewhere in the industry, at one point protection was far ahead of those but now the reverse is true. We need to start listening to our own people.”
This view was echoed earlier by the panel which wants to see the protection sector invest more in technology to optimise the client journey.
Adam Higgs, product manager at Protection Guru, said insurers should spend money “in the right place” and do more to make the client journey an “easy experience”.
Higgs added that the sector should engage more with wealth advisers who are not doing enough on protection.
David Mead, director of Future Proof, said the technology process in the protection sector is “clunky” and this is a put off for many advisers.
He stressed the need for technology to be interlaced with the “human touch”.
He said insurance is a “people to people business” and that technology can’t fully replace humans due to its inability to “empathise” and explain to client their needs and vulnerabilities.
Daisy Qi Dong, head of product at Bolttech¸ said the protection sector can learn a lot from the successful adoption of technology by sectors such as general insurance, banking, and car manufacturing.
She said the latter had integrated and streamlined every part of the value chain. And this has led to efficiency and better client outcomes.
She noted that the protection sector can borrow from these sectors to improve its process from underwriting to claims.
Meanwhile, iPipeline director of client distribution Stephen Hydon said one of the biggest challenges for the protection sector is its focus on competition rather than client.
She said the “competitor obsession” has led to the sector’s focus on price rather than good customer outcome.
Joanne Cole, an adviser with BrokeriQ said the sector can learn from Amazon, a firm that has leveraged technology with successful results.
Cole said the sector should breakdown the barriers to technology adoption and put client first. She added that technology development will shape the industry which is seeing a shift in attitude from younger generations.
