Should Brokers Trust Their Insurtech Vendors?

Key Takeaways

• 67% say insurtech ROI claims are overstated
• Only 22% trust vendor honesty during sales
• Just 23% believe vendors act ethically
• Transparency, realistic roadmaps demanded by brokers

Summary

The 2026 Benevolent Insurtech Trust Index reveals a deep trust gap between brokers and insurtech vendors, with 67% of surveyed brokers claiming ROI promises are overstated. Only 22% feel vendors are honest about features, pricing, and implementation, while just 23% believe vendors act in the broker’s best interest. Despite these concerns, 57% still acknowledge that technology adds value to their operations. The study, based on 67 Canadian brokers, highlights three erosion points: ROI credibility, sales‑process honesty, and partnership perception.

Pulse Analysis

Trust is the currency of the insurance technology ecosystem, yet the latest Benevolent Insurtech Trust Index shows brokers are increasingly skeptical. Two‑thirds of respondents argue that promised time‑savings and ROI are inflated, creating a credibility gap that hampers adoption. While 57% still recognize tangible value from digital tools, the disconnect between expectation and reality fuels "dark social" chatter at industry events, where negative experiences spread faster than success stories. This sentiment mirrors broader tech‑buyer fatigue, where over‑promising has become a liability rather than a differentiator.

For vendors, the findings signal an urgent need to recalibrate sales narratives and deliver verifiable outcomes. Brokers are demanding concrete case studies, transparent pricing, and realistic implementation timelines—elements that can convert skepticism into partnership. Companies that shift from hype‑driven messaging to evidence‑based proof points are likely to retain existing clients and attract new ones. Moreover, aligning product roadmaps with broker priorities and demonstrating willingness to make sacrifices can rebuild the perception of mutual interest, turning vendors from mere suppliers into strategic allies.

Looking ahead, the trust deficit could reshape the competitive landscape. Insurtech firms that embed trust‑building mechanisms—such as open‑source performance dashboards, third‑party audit results, and co‑development programs—will differentiate themselves in a crowded market. Brokers, in turn, may gravitate toward vendors offering clear ROI metrics and post‑implementation support, driving a shift toward longer‑term, partnership‑oriented contracts. Ultimately, restoring confidence will not only accelerate technology diffusion but also enhance client outcomes, reinforcing the industry’s broader goal of more efficient, customer‑centric insurance services.