Digitalization and the Adoption of Artificial Intelligence in Insurance

Broker Ins is the only member of the international broker network WING Insurance from Bulgaria. This network brings together leading insurance brokers from different parts of the world and was created to provide access to global insurance solutions for clients in different regions. Mr. Staykov, since we have not yet had the opportunity to introduce you and the insurance broker you manage, may I ask you for a brief introduction? Broker Ins is a leading insurance broker with many years of experience in the insurance market. We were founded in 1998, and over the years, together with our team, we have managed to build and establish ourselves as a company with vision, sustainable growth, a client focus and a developed IT infrastructure, as well as a trusted partner for all our clients. Our team consists of nearly 150 experienced industry professionals, with a national presence of 43 offices in Sofia and across the country. We are an innovative insurance broker that strives to be an industry leader by continuously developing and implementing new platforms and technologies. For us, it is important not only to keep pace with changes in the insurance market, but also to anticipate future trends so that we can provide our clients with the most up-to-date solutions. We constantly strive to generate ideas and to create and launch new products that meet the evolving needs and expectations of the market. Over the years, we have significantly developed the expertise of our teams in serving corporate clients, small and medium-sized businesses and individuals. Our portfolio includes as many as 11 of our own branded products and services, created over the years to meet the diverse and unique needs of our clients. These include, for example, the niche product "The Car Ins", a multi-year Motor Own Damage (Casco) policy with GAP cover, with a fixed premium and sum insured for the entire period, developed especially for loyal Broker Ins clients; "The Home Ins" property insurance; our pet insurance "Protected Paws"; and the "VeloProtect" bicycle insurance with theft cover included. Through the Insy.Benefits platform, we enable employers to offer their employees personalized and flexible insurance solutions as employee benefits. We partner with leading lessors on leasing programs, offer an international drone insurance program, and much more. The goal is clear: to improve our offering, increase client satisfaction, give our clients access to the best possible insurance solutions and establish ourselves as a long-term partner. The end and the beginning of each year is a time for taking stock and making plans. How would you sum up 2024? 2024 was a dynamic and challenging year for the insurance sector, as well as for us as an insurance broker. Despite many variable factors in the economy and the global situation, we made significant progress in providing high-quality, personalized insurance solutions for our clients. We are pleased with the growth in premium income, thanks to an expanding client base and new partnerships. We serviced over 90,000 policies across all lines of business, including individuals and corporate clients from various sectors. We are expanding our team and investing in upskilling our colleagues so that we can meet the ever-higher expectations of our clients. What is the business environment like for insurance brokers in Bulgaria: fair, correct, or...? The business environment for insurance brokers in Bulgaria has undergone significant changes in recent years, and it is characterized by a wide range of opportunities, but also by certain challenges. On the one hand, the insurance services market in Bulgaria remains highly competitive, with more and more companies offering a variety of products. Insurance brokers need to stand out with unique offerings, personalized solutions and high-quality service in order to attract and retain clients. Competition comes not only from traditional insurers, but also from new technologies and digitalization, which are changing the way people search for and choose insurance. The introduction and development of innovations such as mobile apps and insurance comparison platforms can significantly improve client service. This opens up new opportunities for brokers to reach a wider audience and offer more competitive terms. Successful brokers will need innovation and adaptability, as well as the capabilities and teams to deliver personalized, high-quality services to their clients. Are there any legislative or other obstacles that need to be overcome so that you can work in a better business environment? As with any highly regulated business, there are undoubtedly a number of legislative and regulatory obstacles that can affect insurance brokers and create additional difficulties for the optimal development of business in the sector. One of the main difficulties is the large amount of administrative work and the complexity of the regulatory requirements imposed by current legislation. Simpler and more effective regulations on the conclusion of insurance contracts and on reporting would reduce the bureaucratic burden and speed up processes, improving business conditions in the market. In addition, in order to provide their clients with the best insurance products and services, brokers need access to high-quality, up-to-date market data. Although some of this data is available, access to certain information is often limited, which makes it difficult for brokers to carry out a complete and accurate risk analysis. In recent years, the big challenge in most areas of business has been so-called digitalization. Artificial intelligence is also making serious inroads into work processes. How are you handling these challenges, and how is insurance in Bulgaria and around the world handling them? As I mentioned, digitalization and the adoption of artificial intelligence are undoubtedly two of the biggest challenges facing the insurance sector in Bulgaria and around the world in recent years. For insurance brokers, this means not only the need to adapt to new technologies, but also a chance to provide better service, optimize processes and reach new clients. At Broker Ins, we began our digital transformation long ago, fully aware that it is key to the future. As early as 2007, we developed a convenient platform for fast and secure online insurance: 24ins.bg. We implemented our own system for automating the company's internal processes and successfully integrated with the systems of most insurance companies. Next, we will roll out a platform for the digital distribution of insurance products: INSY.AI. It brings together a set of tools designed to handle various aspects of the insurance product distribution process, including through channels that have not been used in Bulgaria until now. From insurance product knowledge management, through distribution, to claims management, INSY.AI is designed to address the digital challenges facing insurance companies and intermediaries in the insurance business. Very soon, Broker Ins will also launch its mobile app, which will give our clients a wide range of services, options and easier access to our products. It has been created with the convenience and needs of our clients in mind. Our app will provide information on all insurance policies concluded through our intermediation, the ability to compare and buy insurance quickly and easily directly from your phone, access to individual quotes, automatic reminders of expiring policies and upcoming installments, the option to pay installments, and online claims notification. We plan for our mobile app to become the main channel of contact with our clients. Tell us about the international broker network of which Broker Ins is the only member from Bulgaria. Broker Ins is the only member of the international broker network WING Insurance from Bulgaria. This network brings together leading insurance brokers from different parts of the world and was created to provide access to global insurance solutions for clients in different regions. Membership in such a network gives us unique opportunities to access and offer the best products and services, while at the same time benefiting from the international experience and resources of our partners. Together with colleagues from different markets, we partner successfully in serving clients under our global programs, giving them the best practices of both the local and the international market. Will these innovations lead to changes in sales channels and in the way the end client is reached? Digitalization, artificial intelligence, social media, integrated services and partnerships will change both the sales process and the relationship between insurers and their clients. In the future, we will have increasingly personalized, easy-to-use and accessible sales channels, which will lead to better service and more effective reach to target audiences. We can draw an analogy between the arrival of artificial intelligence and the arrival of the internet 25 years ago. In this sense, it will undoubtedly lead to significant changes in sales channels and in the way insurance brokers and companies reach the end client. The traditional role of the broker is to understand clients' insurance requirements, provide guidance and advice on the most suitable products, place the business with an insurer and monitor that relationship. Online platforms and artificial intelligence can support the broker's traditional role, but in a way that delivers value to the client and allows the broker to be more efficient in their processes and in attracting new clients and partners. Since you have been in the insurance business for a long time and have first-hand observations of the attitudes of insurance consumers, have these attitudes changed in any direction over the years? Our observations show that the attitudes of insurance consumers have changed significantly over the years. These changes can be attributed to various factors, including technology, globalization, economic conditions and changes in people's lifestyles. As I already mentioned, there is a growing interest in digital and online services. Many clients now prefer to receive offers and conclude contracts through online platforms, apps or chatbots, which give them easy access to a variety of insurance products, as well as the ability to compare them in real time. With the growing importance of fast technologies, clients are becoming increasingly demanding about the response time of brokers and insurers. They expect fast claims handling, instant answers to questions and easy access to assistance in the event of an insured event. Companies that offer these services build greater trust and satisfaction among their clients. Another change observed in recent years is clients' growing interest in long-term relationships with brokers and companies. Whereas in the past insurance was often seen as a one-off purchase, today many consumers prefer to build long-term relationships with brokers or insurance companies. They are looking for trusted partners who can provide them with appropriate coverage over the years, while receiving personalized advice and services that meet their changing needs. This is also the reason for the growing importance of advisory services and long-term client relationships. With growing awareness of the need for insurance and the variety of products on offer, consumers are becoming increasingly demanding when it comes to personalization. They want solutions that meet their specific needs, not one-size-fits-all products. For example, instead of being interested in standard package policies, many clients are looking for insurance that covers specific risks and is designed and negotiated to suit them. Under the freedom to provide goods and services, there are over 2,200 foreign insurance brokers in Bulgaria that have notified the Financial Supervision Commission (FSC) of their intention to operate here. Does this change the work of local insurance intermediaries in any way? Does this practice help, hinder, or take away your clients? Competition is always beneficial, because it motivates local brokers to offer better terms, more competitive solutions and a higher quality of service. I believe it is an incentive for us to become better. Local clients will always look for a face-to-face contact, an understanding of their specific needs and help with administrative processes, which is something clients find in us as a broker. It is a chance for us to communicate more actively the value we bring, not only as intermediaries, but as advisors and advocates of the client's interests. And finally, Mr. Staykov, let me ask about your expectations and plans for 2025. How do you see the market developing, for you and in general? Broker Ins has always been a partner that provides solutions that meet the needs of our clients, while guaranteeing transparency and trust. This is the direction in which we will continue to move. Part of our plans for 2025 is to expand our portfolio with even more innovative insurance products that meet the growing needs of our clients. We continue to believe that good service and professionalism are at the heart of our success, and we are committed to providing the best possible solutions for our clients. The insurance market will continue to change and adapt to new conditions, with digitalization, product innovation and changing consumer attitudes as the key drivers of development. The market will require us to be ever more flexible and innovative, while we never stop training our employees and investing in new technologies. I believe that the coming year will offer us many new opportunities that we will be able to use to develop our business and meet our clients' new expectations.