Asia sprints ahead on insurtech
Against a backdrop of consumer-friendly mobile technologies, fewer legacy system challenges and accommodating regulatory environments, Asia’s insurers are sprinting ahead of the rest of the world on digital customer experience, Stephen O’Hearn, global insurance leader at PwC, told SIRC Today.
“Consumers today are open to a much more iterative relationship with their insurer than ever before. Instead of the low interaction model of annual premium payments and periodic claims, today’s consumers are inviting insurers to be more relevant in their daily lives, which is an invitation the industry should jump at,” O’Hearn said.
Insurtechs have been embraced by the re/insurance industry in Asia and are often acquired to benefit some aspect of the value chain, he said. Some of the different technologies they are investing in include data analytics, robotics process automation in the back office, artificial intelligence in underwriting and claims functions, and blockchain.
“Our research shows two-thirds of consumers globally would gladly put a sensor in their home or car if doing so reduced their insurance premiums. I think the percentage is much higher in Asia where data privacy concerns are fewer,” said O’Hearn.
He suggested the future direction of insurtech lies in pulling incumbents beyond the traditional boundaries of the insurance value chain into adjacent ecosystems, such as health, automotive and real estate.
“This is where the incumbents can find new relevance in the lives of consumers while developing loyalties and trusting that this will ultimately lead to sales of products and services,” he explained.
Finally, O’Hearn suggested, blockchain has the potential to revolutionise data flows in the sector.
“We expect 66 percent of insurers will have blockchain use cases in production in 2018 and 100 percent by 2021,” said O’Hearn.
“In Asia, it is being introduced into product design, such as the travel delay insurance which is becoming popular.”
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