Insights from Mickey Gambale at Liberty Group South Africa
The insurance industry has witnessed monumental changes over the last decade. Traditional structures and systems undergo transformation because of a shift in market dynamics and competition, such as new distribution channels that entered the market in the last decade.
In a recent podcast conversation between Frie Pétré (CEO, Qollabi) and Mickey Gambale (Executive, Liberty Group, the changing insurance landscape was the topic of discussion. Frie and Mickey dive deep into the challenges and the dynamics of the intermediary sales channel. Mickey shared his experiences and perspectives, painting a picture of the future distribution operating model.
1. The Changing Power Dynamic in the Insurance Landscape
The insurance landscape's shifting sands have caused significant disruptions in how insurance carriers operate and distribute their products. Factors like the entry of FinTech players into the market, changing end-customer behaviors, and the consolidation of intermediaries have resulted in a paradigm shift. This has altered the power dynamic between insurance carriers and their sales partners. For insurers, the message is clear: if you're not willing to partner, empower, and bring innovative technology to the intermediary channel, they'll move on to someone who will.
2. The Evolution of Indirect Sales
Historically, indirect sales revolved around the simple principle of relationships. And while relationships remain crucial, the value propositions have expanded. Mickey stresses the need for introducing more structured approaches and emphasizes that traditional technologies like CRM aren't necessarily tailored to the contemporary demands of indirect sales. The future is about synergistic partnerships, working cohesively towards shared objectives. It calls for tools like BRM (Business Relationship Management) to embed this partnership ethos more deeply.
3. The Rising Significance of Accountability & Data
Interestingly, Mickey observed that intermediaries appreciate being held accountable, given that they're provided with the right tools and insights. Data, in this context, is of paramount importance. The era we're transitioning into is one where information is not just power but also partnership. When presented appropriately, intermediaries are more than willing to embrace data because they recognize its advantages.
Technological advancements are paving the way for more accessible and actionable data for intermediaries. The role of the insurance carrier is evolving from just being a provider to an advisor, guiding the intermediary in optimizing and leveraging data for the best possible outcomes.
Mickey Gambale's insights offer a glimpse into the evolving world of insurance distribution. With changing power dynamics, the increasing importance of structured processes in indirect sales, and the pivotal role of data and technology, the industry is at an exciting crossroads. As Mickey aptly puts it, it's about partnership, empowerment, and innovation. And for those ready to embrace this new reality, the future looks promising.