By George Nicolaides, Founder and Chief Executive Officer of Gan Direct
Whenever technology transforms an industry, the same questions inevitably arise. Will it replace professionals? Will it make traditional business models obsolete? Will it fundamentally change the way things have always been done? The insurance industry is no exception.
In recent years, there has been no shortage of predictions about the future of insurance intermediation. Personally, I believe the debate is based on the wrong premise. The real question is not whether insurance intermediaries will survive. The real question is where they create genuine value for their clients.
For many years, almost every type of insurance was distributed in much the same way. Whether it was a straightforward motor insurance policy or a sophisticated risk management programme for a multinational corporation, the distribution model was largely identical.
Today, however, customer needs are fundamentally different.
A customer purchasing motor or home insurance is rarely looking for professional advice. They already know what they need. They want to compare options easily, understand what is covered, complete the purchase in just a few minutes and receive prompt assistance whenever they need it. For these customers, the real value lies in speed, simplicity, transparency and competitive pricing.
That has always been the rationale behind direct insurance.
Its purpose was never to eliminate the insurance intermediary, but rather to create a different service model for insurance products where intermediary advice—and the cost that accompanies it—is not essential for customers to make the right purchasing decision. In every industry, when a service no longer adds meaningful value, customers will sooner or later seek a more direct and efficient alternative. That is precisely what is happening across the European insurance market today.
At the same time, however, something equally important is taking place.
The simpler standardised insurance products become, the greater the value of genuine professional advice in areas where it cannot be replaced.
Today, the true value of an insurance intermediary no longer lies in issuing a motor insurance policy. It lies in understanding a client’s overall risk profile, identifying exposures that are not immediately apparent, designing comprehensive insurance programmes and advising businesses and professionals on decisions that may affect their operations for years to come.
Commercial insurance, industrial risks, cyber insurance, professional indemnity, international insurance programmes, specialised risks and large-scale corporate activities all require expertise, experience and continuous assessment. In these areas, a digital platform alone is not enough. Human judgement remains the most valuable asset.
For this reason, I do not believe insurance intermediation will disappear. I believe it will become increasingly specialised.
Insurance intermediaries will spend less time handling products that can be efficiently distributed through direct channels and more time focusing on areas where expert advice is an integral part of the value proposition itself.
This also means that the market will evolve.
Professionals who choose this path will need to invest even more heavily in expertise, specialisation and high-value advisory services. Others, after decades of successful careers, may decide that the time has come to retire, realising the value of the client portfolios they have built over many years. I believe that this decision, too, should be approached with professionalism, careful planning and respect for both clients and the business that has been created.
This is why Gan Direct is prepared to acquire specialized global portfolios from professionals who wish to retire, realise the value they have built over the years or even evolve their business model with our support.
This does not represent a change in our strategy. Gan Direct was established as a direct insurance company and will continue to invest in the direct model because we firmly believe it remains the most effective approach for standardised personal insurance products. At the same time, however, we recognise that every mature insurance market needs structured succession solutions for professionals who wish to conclude their business journey in a way that safeguards both the value of their portfolios and the continuity of service for their clients.
The market is not divided into winners and losers. It is divided into business models that adapt to changing customer needs and those that continue to operate as they did twenty years ago.
I believe the insurance intermediary of the future will not succeed by selling more insurance policies.
They will succeed by solving more complex problems.
Ultimately, that is good not only for the profession itself, but also for the clients who place their trust in it.
Also read: The customer is becoming the most powerful player in the insurance market
The insurance industry doesn’t need more products. It needs more trust.
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