The Hidden Cost of Servicing Calls : How Technology Can Help Brokers Reclaim Time and Drive Sales

Insurance brokers are often caught in the middle of two competing needs, providing excellent customer service, and focusing on activities that directly generate revenue. While brokers’ core strength lies in advising clients, customizing policies, and securing new business, they often find themselves bogged down by servicing calls that are routine inquiries about policy details, claims status, or billing information. Though they provide a critical service to customers, these calls are non-revenue-generating and take time away from more valuable activities such as prospecting, cross-selling and client relationship building.

Globally, brokers spend up to 30% to 40% of their time on such servicing-related tasks, according to Accenture (some brokers we’re working with report that around 80% of the transactions they handle are related to policy inquiries, policy changes and billing), draining time that could be better spent on high-value activities such as prospecting. In an insurance broker market defined by intense competition and slim profit margins, this inefficient use of time presents a significant challenge.

The solution lies in embracing technology—specifically, automation and customer self-service. These tools can drastically reduce the time spent on routine servicing tasks, freeing up brokers to focus on what really matters: growing their books of business and delivering tailored solutions to clients.

The Cost of Servicing Calls

Inefficiencies in client servicing not only drive up operational costs and impact customer experience but also undermine broker morale by diminishing their earning potential. This can lead to higher turnover rates, which in turn increases training and onboarding expenses for brokerages. On any given day, brokers can be swamped with requests for basic information: “What’s the status of my claim?” “When is my policy renewal due?” “How can I make a payment?” These inquiries, while important, are repetitive and could easily be handled by automated systems.

Without technology to ease this burden, brokers are forced to split their time between administrative tasks and client advisory work, leading to lost opportunities. According to Forrester, brokers who adopt digital tools like automation and self-service see an average annual revenue increase of $1.2 million. Those who don't are likely to see their revenues stagnate.

Technology as the Game Changer

For brokerages looking to reclaim time, increase productivity, and improve profitability, technology offers clear solutions. Insurance companies are implementing customer self-service platforms and automation to enhance both broker and client experiences. These tools not only reduce the need for servicing calls but also streamline internal processes, leading to faster, more efficient service.

Automation in client servicing is driving profits for Insurers and Brokers via increased customer retention and reduced operational costs

Customer self-service platforms give clients 24/7 access to their insurance information, allowing them to independently manage tasks such as checking claims status, updating policies, and making payments. This drastically reduces the number of inbound calls brokers must handle so long as these platforms are well built and integrate seamlessly with insurer systems.

The insurance industry has been slow to adapt to the digital era, but change is on the horizon. A few  insurers have  launched self-service portals that allow clients to manage their policies and claims online, reducing inbound servicing calls.  Other insurers have made investments in broker-focused digital tools with “broker portals” that allow brokers to manage client policies, claims, and renewals in real-time, reducing the need for back-and-forth communication with clients. However,  for a majority of Canadian customers mundane service interactions continue to require a phone call to complete.

Notwithstanding attempts by carriers to "help", brokers complain of inconsistent experiences across portals, the difficulty of training new employers to operate and manage these tools, in short, what has been described by some as “death by a thousand portals.” A number of insurance brokerages in Canada are trying to implement their own solution to improve efficiency. Through these solutions, broker customers can view and manage their insurance policies, submit claims, and make payments online. These portals allow brokers to streamline policy management thereby reducing the need for brokers to engage in routine administrative tasks. .​ The issue of course is the cost to build and maintain the backend infrastructure that allows these connections. 

From a consumer standpoint the need for a solution is a no-brainer.  More than two-thirds of customers including customers over 55+ say they want immediate digital experiences for basic customer service issues, driven by the need for convenience and accessibility. This boosts customer satisfaction and directly enhances  profitability by driving higher customer retention and renewal rates.

The strategic and financial advantages of adopting self-service and automation tools are clear

By reducing the need for brokers to handle servicing calls, technology can unlock valuable time for brokers that can be redirected to activities that directly contribute to revenue generation and client satisfaction. As the insurance industry continues to evolve, brokers must embrace technology to remain competitive. Self-service platforms and automation are no longer just "nice to haves"—they are essential tools for boosting productivity, improving client satisfaction, and increasing profitability.

DataBraid enters the market with a first product that focuses on brokers and addressing this very need. It will offer brokers the connection infrastructure which enables them to  cost effectively build self-service and automation tools that will future proof their business and allow them to offer their customers the service they deserve. The best analogy would be a Shopify-like, plug-and-play infrastructure built ground up for insurance. For brokers and brokerages looking to thrive in the digital age, embracing the technological future that DataBraid enables is no longer optional—it’s a strategic imperative.