Leveraging Digitisation to Grow the Market

November 10, 2017| By Jules Constantinou | L/H General Industry | English | Deutsch

Society is experiencing change brought about by the rapid convergence and transformation of many factors, amongst them the physical, the biological and the digital spheres. Access to greater computing power and new technologies will exponentially accelerate the impact of all of these factors, bringing rapid and continuous change.

Change is affecting all industries, in particular the way businesses interact with their customers. It is inevitable that this change will also come to life and health insurance.

Some non-life insurance companies, in collaboration with technology startups acting as distributors or proposition facilitators, have already begun to use the Internet of Things and Artificial Intelligence chatbots to extend their propositions to “on demand” covers and to service and solution-driven support.

Sensors and digital sources, such as smartphones, collect thousands of data points every day on a wide range of biometric markers and lifestyle factors. These can be processed using algorithms to turn ones and zeros into meaningful risk insights.

It is also evident the pace and state of change differs by geographical location. The penetration of tech is governed by multiple factors, including culture and the prevailing regulatory environment. Last year, global life insurance premiums as a percentage of GDP reached around 3.5%. But access to cover is typically limited to individuals in formal employment, with bank accounts and access to products through traditional channels.

Leveraging Digitisation

Our aim is to grow the market for our products - and provide valuable protection for more people who need it. New technology will open access to previously uninsured or underinsured parts of the world’s population. It can provide easier access to life insurance products than ever before. There is therefore considerable growth potential over the next few years as insurance markets expand their reach.

The future is all about data. Not only will entities that have access to data be successful, but customers’ personal data will be a powerful driver in the development of future insurance propositions that enable them to live better lives.

Lasting change will come from truly understanding our customers’ needs and designing processes to help them to deal with the issues they are facing. Emerging technologies, in particular voice recognition technologies, will enable insurance companies to "get the job done" easily and conveniently, whether the technologies provide underwriting information or notification of claims. But this innovation in life and health insurance can only happen through a collaboration between reinsurers, insurers and new tech businesses, where each party brings their insights and skills together for the ultimate benefit of the customer.


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