What Technological Challenges Do Brokers Face?

Brokers can feel understood and heard while understanding and appreciating how the new technology is here to help them by recognizing their pain spots and following the three steps to overcome them when adopting the tech-related shift.

Fremont, CA: Brokers must embrace new technologies to prosper as more insurance businesses prepare to enter the digital transformation era.

Change, on the other hand, is difficult. Modern change management practitioners use the same scheme for modeling the 5 Stages of Grief to support organizational transformation. The Kübler-Ross change curve wonderfully represents the route of accepting change. This model describes the various stages of change, including shock, denial, frustration, despair, exploration, decision, and integration. While the stages are not chronological, they demonstrate how any substantial and disruptive change will always rock the boat—but it does not have to be the end of the world.

These confirmed stages also reflect four significant problems, which are detailed below:

Lack of Incentive and Motivation

Brokers are unlikely to be motivated if the benefits of technology advancements do not apply to them personally. Brokers may struggle to comprehend the benefit of the change if they don't understand how new technology would simplify their day, such as by decreasing manual processes or making it more straightforward to pleasure their clients—helping them earn incentives.  

Reduced Time and Capacity

Because a broker's position typically requires managing multiple responsibilities simultaneously, it is normal for brokers to want assistance in creating time for them.

Furthermore, incorporating new technologies may disrupt existing workflows and operational processes. Brokers will initially add the system to an already complex workflow; their awareness of the desired outcome will keep the firm functioning, but doing it in a new way can be disconcerting. This level of change and uncertainty frequently allows little time for in-depth research and integration of new technology, resulting in discomfort and a never-ending cycle of delayed adoption.

Feeling Unready and Unprepared

The rapid advancement of technology might make brokers feel like they're always playing catch-up. New tools, software, and platforms constantly emerge, creating a dynamic world that necessitates adaptation. It's no surprise that brokers may feel unprepared.  

Although some insurance directors may disagree, before you toss brokers into the deep end, you must teach them how to swim. Brokers may not have received appropriate training on the most recent digital tools, analytics platforms, or AI applications, leaving them unprepared to handle the changing technical landscape.

Lack of Emotional and Informational Support

Some brokers are visibly concerned that adopting technology may render critical portions of their work obsolete, raising questions about job security. Furthermore, when a solution automates multiple phases that a broker could previously evaluate, there is an unavoidable ambiguity about the outcome. This anxiety can worsen without emotional support from leaders and colleagues, resulting in lower morale and output.