A Leapfrog Growth of Insurance Brokerage in Asia

How the pandemic-induced shift has actually resulted in more frequent and more efficient interactions between insurance brokers/agents and their customers?

The impact of COVID-19 is predicted to limit the growth of the insurance brokers market over the forecast period. COVID-19 pandemic had taken the lives of millions of people, affected supply chains & business sectors, and disrupted economies worldwide. It had several impacts on the insurance sector, from employee and business continuity concerns to customer care considerations to the financial outlook.

The demand for insurance policies has risen due to the availability of security services and customized financial services to clients. The increasing demand for insurance policies is expected to fuel the growth of the insurance brokers market over the coming years. Thence, the integration of AI in the insurance sector is a key trend gaining popularity in the insurance brokers market. The AI and human creativity combined power integrate the Intelligent Broker, an automation program for the insurance industry. Brokers will be able to resolve complicated obstacles, produce innovative products and services, and join or build new markets. In return, AI in the insurance industry will improve customer service and prevent customers from fraud.

Post-Pandemic the demand for insurance policies has risen due to the availability of security services and customized financial services to clients. Thus, Insurance brokers are at the forefront in terms of client education and services. The demand for insurance broking services is highest in the technically complicated insurance deals, which is typical for large corporates with complex business operations and often the need to introduce multiple insurers for risk sharing.

The insurance brokers market consists of sales of insurance policies by entities (organizations, sole traders, and partnerships) that act as intermediaries (i.e., agents or brokers) in selling annuities and insurance policies. Only goods and services traded between entities or sold to end consumers are included. The main types of insurance brokers are life insurance, general insurance, health insurance, others. Life insurance in the insurance brokers market refers to the contract between the insurer and the insurance policyholder that promises to pay a total sum of money upon the death of an insured person. The services are offered in various modes such as offline, and online mode. These are used by corporate, and individuals.

In 2021, 60 percent of the insurance companies targeted AI to be used in decision-making and to reduce manual input which has doubled in the last two years.