Role of technology in transforming the South African short-term insurnace broker business model

Abstract

The broker business model has been for decades the main distribution channel used by insurers to sell simple and complex insurance products. The prime value proposition for the broker business model has been the ability to build strong relationships and maintain high levels of trust with clients on behalf of the insurer. Whilst the broker’s ability to directly offer one on one interactions, build long term relationships, have client empathy and language proficiency Extant literature asserted that the customer journey has evolved due to the rising tech-savvy individuals who demand faster, cheaper and customisable products that enable them to transact from devices such as mobile phones that enable faster and efficient communication This explorative study employed a qualitative approach to gather insights from the lived experiences of brokers. The study found that networks are continuously disrupted and highlighted the importance of continuous business model review to take advantage of the opportunities presented by technology and other external disruptions. This research study proposed a framework that businesses can utilise in practice to assess their networks for opportunities. The proposed Actor Network Capability Analysis framework provides businesses with a practical tool to use in responding to disruptions that occur within their networks.