Quality advice still matters: how intermediaries can add value in the digital age

By Fanus Coetzee, Chief Executive Officer at Santam Broker Solutions

According to a TransUnion survey, 42% of South African insurance consumers, particularly Gen X (43%) and millennials (47%), use insurance company websites and mobile apps for their insurance needs.

As AI, price comparison platforms, and digitisation reshape the insurance industry, it may seem that price and convenience are all that matter. But, in a world where risks are constantly changing and client expectations are shaped by seamless digital experiences in banking, retail and beyond, intermediaries still have a vital role to play – but will need to adapt.

The insurance client of today expects an experience as streamlined and responsive as any online service. From banking to travel, digital convenience has become the baseline and insurance is no exception. Aggregators and comparison platforms, along with digitised claims experiences, are accelerating commoditisation in both personal and business insurance. As this plays out, the question becomes: what role remains for the human broker?

Five ways intermediaries can satisfy the digital-first client

Intermediated business models may not win on price alone, but they can compete, and win, on value. Complex personal and commercial insurance needs cannot always be resolved with self-service tools. High-net-worth individuals, SMEs with layered risk profiles, and corporate clients wading through regulatory and sector-specific exposures benefit from advice that algorithms can’t fully replicate.

As AI automates more of the insurance journey, intermediaries have the opportunity to redefine their value beyond product providers by embracing their role as nuanced risk advisors, trusted partners, and service differentiators. Brokers must double down on the strengths that technology can’t easily replace.

These include:

1. Risk insight

 Adequately servicing clients is more than just sharing product options; they want to understand the risks they may face. There is a growing opportunity to leverage AI and digital tools in proactive risk management strategies. Intermediaries who use data-driven insights to anticipate client needs, suggest improvements, and offer more personalized guidance can demonstrate value far beyond the initial premium quote.

2. Customisation

Intermediaries should shape and tailor-make product offerings by taking into consideration the client’s needs, lifestyles and risk tolerance to match individual client needs.

3. Claims support

The claims process is normally the most stressful part of having insurance. Intermediaries play a crucial role in guiding and supporting clients through difficult moments with empathy.

4. Human judgement

Despite the advancements in AI, Human judgment is still essential in interpreting nuances, especially in claims or coverage decisions. The intermediary’s knowledge in this regard is invaluable.

5. Relationships

With insurance ultimately being about trust, technology frees advisors to focus more time on what they do best: adding insight, care and support.

Focusing on segments that value advice

Not all clients are price-driven. High-net-worth clients, those with bespoke cover needs, and corporates that manage significant exposures are more concerned with the quality of cover, service reliability and claims responsiveness than with finding the cheapest option. These are key focus areas for intermediated models, where human guidance is indispensable.

Combining tech with the human touch

Digital convenience will only continue to shape client expectations, but it won’t erase the need for expert advice. For intermediaries, the path forward lies in leveraging change to serve clients more effectively. Focusing on segments that value bespoke advice and using technology to enhance (not replace) their offering, intermediaries can confidently claim their place in the future of insurance.

From using AI to identify coverage gaps, to employing CRM systems for personalised service, to enabling virtual consultations and real-time claims updates – technology frees advisors to focus on what they do best: adding insight, care and support.

In an environment where insurance products are becoming digital commodities, the true differentiator becomes the quality of the advice and the depth of the relationship. That’s where intermediaries shine. Digital tools can amplify an intermediary's impact and those who adopt the right tools will stay relevant and position themselves to offer holistic, high-value service in a market that still craves human connection.