New markets are partnering with established digital platforms and ecosystems to combine features typically offered by standalone incumbent firms into a one-stop-shop service.
Emerging markets are dominating the customer-focus digital space, optimising the potential offered by digitalisation, as in many of these markets, the starting point is digital rather than analogue, according to the latest Swiss Re sigma report.
Insurers in emerging markets lead the way in optimising the potential of access to different data sources and consumer touchpoints. They are partnering with established digital platforms and ecosystems to combine features typically offered by standalone incumbent firms into a one-stop-shop service, according to the report.
Regulation will play an important role in supporting the integration of new technology and data into insurance business across different jurisdictions. In monetising the potential of digitalisation, insurers will need to manage local data protection and privacy requirements.
Longer-term, successful insurers will be those that can leverage insights from their investments and partnerships in data and analytics, and develop compelling risk protection solutions aligned with evolving regulations.
The availability of internet-enabled devices and universal connectivity has also changed consumer behaviours and expectations, particularly among younger generations. Empowered with digitally-facilitated information, consumers expect rapid access to information, transparency, and more personalised purchase experiences relevant to their lifestyles.
“As a result of digitalisation, insurers now have direct connection to their customers“, says Jeffrey Bohn, chief research & innovation officer at Swiss Re Institute. “With the availability of granular data, insurers can better segment customers enabling them to develop new tailored products & services, and refine existing ones in real time. This benefits customers and insurers alike.“