Bespoke Insurance

With the onset of digital transformation in Canada’s commercial insurance marketplace, brokers are advised to focus their attention on providing clients with tailor-made, customized advice in the areas of cyber insurance, tech start-ups, liability, and employee benefits.

Each of these areas, even if some may prove to be more challenging to insure than others, provide brokers an opportunity to help their clients by making the most of their advice-based value proposition.

The promise of digital transformation in commercial lines is that it can automate and improve the flow of a large proportion of commercial business policies valued at a premium of $5,000 or less.

This category of business, estimated to be about 30 per cent of Canada’s commercial insurance market, would include consultants working from home, or simple premises exposure, as opposed to factory or plant type of exposures.

Although digitization may help brokers handle a large volume of small business, automation does make it harder for a broker to stand out in the crowd when commercial products become commoditized.

Hence the need for brokers to offer more customized, tailor-made insurance packages to Canadian businesses.

Read the full article in the Digital Edition of the June 2018 Canadian Underwriter.

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