The Role of Insurance Brokers Today
Binci Heeb, Editor-in-Chief at thebrokernews, sat down with Philippe Séjalon of the Engage Institute to discuss whether insurance brokers are still relevant in today's rapidly evolving market. Unlike insurers who sell only their own products, brokers work exclusively for their clients, comparing offers across the market to find the best fit. "I don't think that many insurance policies would be sold if it weren't for the insurance brokers," Heeb noted, adding that brokers also manage ongoing support and claims management on behalf of their clients.
Reinsurance and the Broader Broker Landscape
Heeb also shed light on reinsurance brokers, who transfer risk from primary insurers to reinsurance companies, enabling insurers to manage exposure to catastrophic events such as tornadoes. In Switzerland alone, there are roughly 6,900 broker employees across major firms and over 1,000 smaller ones. The industry association SIBA plays a key role in setting standards around risk analysis, policy implementation, and professional education.
Regulatory Challenges with the New Insurance Supervision Act
A significant concern for brokers is the new Insurance Supervision Act (VAG), set to be introduced on January 1st, 2024. While brokers broadly support requirements for training and further education, many see the law as disproportionately burdensome. Issues around data protection, the blending of dependent and independent intermediary roles, and unclear digital sales obligations have left many in the industry calling for revisions, potentially at the level of the Federal Supreme Court.
Technology as the Future of Brokerage
On innovation, Heeb pointed to AI and blockchain as transformative forces, albeit ones the industry is still catching up to. She highlighted the insurer Heia as an early adopter of ChatGPT-powered chatbots, a major leap beyond traditional static tools. She also noted that smile, a digital insurer, has already entered the metaverse, allowing customers to consult and purchase insurance policies in a 3D virtual environment. Heeb's ultimate wish for brokers is a paperless, predominantly online office while preserving human interaction for clients who need it most.
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thebrokernews is a dedicated media platform covering the Swiss insurance brokerage industry, founded to give a voice to insurance brokers who felt underrepresented in mainstream financial media. The publication addresses topics ranging from regulation and market trends to technology and professional education. It serves both large brokerage firms and the many smaller independent operators active in Switzerland. With a focus on relevance and practical insight, it bridges the gap between industry developments and day-to-day broker practice. thebrokernews is committed to supporting the future viability and attractiveness of the brokerage profession.
