Cloud technology key to solving insurance industry issues

Cloud technology has been identified as a significant catalyst for addressing productivity and operational challenges within the insurance industry.

JAVLN, a cloud-based insurance policy management platform, has released findings from its "Brokering Change" report, which examined the current technological landscape of the insurance sector. The survey, conducted with 500 insurance brokers across small and medium brokerages in Australia, highlighted several areas where traditional operations are falling short amid rapid industry changes.

One of the prominent issues identified in the report is the stalling technological advancement due to outdated systems. JAVLN's research indicates that nearly eight out of ten brokers (77%) feel they are not currently equipped to maximise productivity, with many spending upwards of three hours daily on administrative tasks due to inefficient technology.

These challenges are exacerbated by both external pressures such as natural disasters, inflation, and cyber security threats, and internal pressures such as heightened administrative demands and complex compliance requirements. Collectively, these factors hinder the ability of brokers to provide effective service to their clients.

The reluctance to adopt new technology is linked to factors such as perceived complexity, concerns over data security, and the costs versus return on investment (ROI). A mentality of "if it ain't broke, don't fix it" persists among many within the industry, particularly among older brokers resistant to change.

One broker commented, "It feels daunting to take the first step to move away from legacy systems and invest the time and money in new tech, even though most of us recognise the ROI and value this could unlock across all facets of our business." A younger broker added, "I fear that if we don't adopt technology, our challenges will only compound and grow. As an example, there's no way our small IT team could compete on data security compared to an ever-evolving, cloud-based tech provider."

The report also warns that the sector could struggle to attract the next generation of leaders if technological and automation advancements are not prioritised. Meanwhile, a portion of brokers acknowledge that adopting modern cloud-based solutions could differentiate their businesses and improve operations.

JAVLN's CEO, David Leach, advocates for the adoption of cloud-based software-as-a-service (SaaS) technology as a "turnkey solution" to these prevailing challenges. He stated, "The path to a better, faster, modern and more customer-centric business demands adoption of new technologies that simplify and optimise our work by addressing those wasteful, mundane and repetitive tasks. Keeping up with tech creates competitive advantage and gives time back to focus on your customers."

Leach highlighted that brokers currently spend significant time managing data manually due to outdated systems, stating that there are numerous benefits of shifting to a cloud-based SaaS platform that integrates with other applications. "For example, cloud software that connects to other cloud applications brokers use, streamlines workflows and removes a significant amount of duplication and manual handling," he said.

An example of successful adoption is provided by Trans-West Insurance Brokers, a JAVLN customer that revamped its tech setup to achieve improved productivity and revenue. Pieter Versluis, General Manager at Trans-West, noted, "We were struggling with a fragmented system that made it incredibly difficult to get a full picture of our clients. JAVLN has been a game changer for our brokerage."

JAVLN, originating from New Zealand, continues to focus on delivering its services within the Oceania market, facilitating the transition towards more efficient, technologically integrated operations for insurance professionals.