2016 EY Asia-Pacific insurance outlook
Article Synopsis :
Changing demographics, technology and regulations will make for an interesting 2016 in the APAC insurance markets. The “2016 EY Asia-Pacific insurance outlook” presents six strategic imperatives to help leaders tap potential opportunities:
- Accelerate the shift to online and mobile access: Extending digital presence is the key priority. Specific areas should include personalization of sales and marketing strategies, digitization of customer and product interaction and expanding beyond traditional insurance services with the inclusion of wearable technologies and mobility apps.
- Build business through health market innovation: The private health insurance sector is expected to boom and the industry has to build strategies to leverage this growth. Possible steps include: emphasizing self-service, leveraging partnerships for innovative solutions and embracing wearable technologies.
- Identify M&A and alliance opportunities: Pursue inbound and outbound M&A activities leveraging strong economic conditions and favourable capital levels. Build effective post-merger plans, merging acquired IT capabilities. Search for opportunities in emerging markets.
- Transform underwriting and pricing analytics: Changing demographics and technology advances create demand for sophisticated and tailored product offerings. Acquire and deploy more hi-tech data analytics to support underwriting and pricing features.
- Reinvent operations to reduce costs and drive growth: Transforming business operations to provide integrated customer experience across all channels and customer touch points is a top priority. Collaborate with outsourcing and shared services capabilities/partners to enhance process efficiencies. Renovate operations to make them more compliant with regulations and customer requirements.
- Set corporate governance as a strategic imperative: The increasing complexity of business operations makes it compulsory for insurers to invest in robust corporate governance systems. Filling gaps in the existing talent pool is part of this imperative.
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Digital Insurer's CommentsWith favourable economic conditions and strong capital levels the 2016 outlook for the APAC insurance industry is indeed bright. The better news is insurers are investing aggressively in technologies to help seize the robust opportunities defined in this report.
Insurance consumers demand tailored products and services addressing both needs and wants. As AI and IoT find the mainstream some insurers are finding ways to provide coverages before customers even know they want or need them. True digital insurers thus aim to become anticipatory not reactive—which is the traditional insurance mindset.
Digital insurers also strive to automate the front-office as much as possible, deploying mobility apps, wearable technologies, cloud based business models, sophisticated data analytics and underwriting solutions linked, where possible, to back-office systems. The fully automated stack is the kingmaker in a digital world.
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