In the first part of this series we looked at how Dynamic Distribution will free insurers and brokers from the problems of trying to get their products into the many available distribution channels.
In this article we will look at how Dynamic Distribution will enable an open marketplace where all parties can interact with all products, on-demand, instantly.
With the concept of Dynamic Distribution, we give our platforms much more information about the insurance products that they are transacting. This includes questions, validation, rating, data capture etc. We can then give this information to other parties’ platforms so that they can interact with us correctly, for example a broker platform can create the appropriate screen form and send back the quote request with data in the right format.
Once we are free from having pre-set product information that has to be shared in advance by platforms transacting with each other, we can use this same capability to enable a much more open and complete marketplace.
An open marketplace allows all parties to communicate and makes all products visible so it can be decided which to use as needed. They can then establish a relationship and start transacting without delay.
ParaCode has created such a marketplace where product information can be published by insurers and MGAs and then brokers can find those products when they need them. The marketplace manages the process of establishing a toba between the two parties (broker/insurer) and once this has been set up, the broker can begin to electronically request quotes, incept policies and perform MTAs and renewals on that product immediately.
This mechanism has none of the traditional limitations in terms of what type of product can be handled or the need to have a common question set defined by all parties, so all products of any type can be e-traded and panels established – niche, commercial or personal lines.
Now insurers and MGAs can access the whole marketplace of brokers and appointed representatives from a single central point. They can do this for new and existing products without any of the traditional expense or delay.
A single tenancy on ParaCode will provide access to the whole market, so any integration between insurer/broker systems only needs to be done once and is then reusable across all relationships.
All of the data captured across the whole marketplace is available instantly to authorised parties, and if it’s required on another platform then it can be extracted in a single pass rather than multiple separate jobs/files and API integrations.
ParaCode’s innovation will make life much easier for all parties to trade freely, innovate and maximise revenue. Benefits include increased product visibility, ease and speed of access, no platform dependencies, data availability, lower cost of operation.
Due to the ease of configurability that platforms like ParaCode provide, it’s a very low-risk, low-cost proposition for anyone looking to join the platform, even if its only for one or two products that require rapid delivery or are insuring non-standard items.
In Part 3 we look at how dynamic definitions on the broker site can be a powerful tool to improve how business is operated.