What are the tensions in the insurance market today?
Martine Schreiner: On the one hand, there are the major regulatory changes, which are not a bad thing in themselves, but can sometimes destabilise the market and our customers. On the other hand, there are discrepancies between the insurance cover requested and what the Luxembourg framework provides with its local insurers. This pitfall also affects public procurement contracts, which impose extremely strict and precise specifications for insurance, with guarantees sometimes running into millions of euros - amounts that are out of all proportion to the contract in question. This has the effect of both automatically excluding many companies from the call for tenders, but also favouring certain foreign insurers.
What is an insurance broker? Why use their services?
MS : An insurance broker acts as an intermediary between a customer and the insurers on the market. In this role, they provide the customer with an overall view and direct them towards the most appropriate insurer for their needs and plans. In fact, after a detailed analysis of their business, their objectives and the risks for which they wish to be covered, the broker can offer them solutions from a particular insurer, at the best price.
Very importantly, there is no charge for this service; the broker is commissioned by the selected insurer. At M-Brokers, we do not charge for support or advice and never ask for additional management fees, unlike some competitors.
Does all insurance fall within the prism of its business?
MS: Absolutely, a broker can be asked about all types of insurance, those that relate to personal life as well as professional life. For certain specific topics, such as professional indemnity solutions, directors' and officers' liability, or cyber security risks, brokers are even key contacts. Indeed, they can direct their customers facing this type of risk, towards the most effective and relevant insurers and their insurance solutions.
Could you introduce me to the M-Brokers firm you founded?
MS: M-Brokers is one of the few independent insurance brokerages in Luxembourg. Most are attached to international groups. Conversely, we are a family business, with strong local roots, having perfect knowledge of the market and a clear proximity to our customers. Most of our customers are companies, but we also have a large portfolio of private customers, whom we sometimes support on a professional and personal level. They then have a single point of contact whatever the project, which is a definite advantage.
Even 10 years from now, I can't see AI handling certain aspects of insurance such as claims management. That's a strictly human affair.
Concretely, how does this support work?
MS : We don't generally do any canvassing; it's our business contacts who put us in touch with our customers, or they themselves make a direct call to us. After a very detailed interview on the nature of their project, their needs, an analysis of both the risks and the contracts that our customer already has, we suggest that they review or alternatively use new protection. This information is set out in a set of specifications summarising our customer's objectives and the means we are going to use to achieve them. Invitations to tender are then sent out to local insurance companies, or internationally in the case of specific requests. These are generally negotiated by us until they correspond as closely as possible to our customers' needs. Finally, we forward them to our customers for their decision. We also take care of cancelling other insurance policies if necessary and following up the case: insurance certificates, claims management, supervising expert appraisals etc.
What is your vision for the use of AI in the insurance industry?
MS: At M-Brokers, we use this tool on an ad hoc basis for certain specific assignments, notably research, but AI is not integrated into our process. Some companies use it for claims management, but there are still too many errors. Furthermore, I sincerely believe that certain aspects of the customer-insurer relationship cannot be handled by a machine. A claim logically gives rise to emotions that cannot be entrusted to AI, however sophisticated it may be. It's a matter of human feelings, and to tell the truth, even 10 years from now, I can't see an algorithm being able to handle this aspect.