2017 Latin American Insurance Outlook – EY Report
Article Synopsis :
Despite the dramatic economic downturn in Latin America in the past three years, insurers in the region have remained profitable and are poised for growth. While there are sharp regional variations in economic conditions and demand for insurance products, one common dominator is an underserved market in both the personal and commercial space.
“2017 Latin American Insurance Outlook” from EY articulates the following “Should-Be” strategic priorities for insurers in the region in 2017:
1. Take customer centricity to the next level: Key strategic priorities should include:
- Shifting from a product to a customer approach, and offering a seamless omni-channel experience.
- Tapping the uninsured market by building on customer education using technology, product innovation and new business models.
- Investing to build greater customer engagement through social media and other digital channels.
2. Keep a close watch on emerging regulations: Focus on building strong systems to monitor regulatory changes; instill risk management awareness and techniques into organisational culture.
3. Put cybersecurity high on the corporate agenda: Build robust cybersecurity systems to monitor existing and new digital ecosystems.
4. Use the latest technologies to drive performance: Digitisation of end-to-end systems and leveraging internal and external data will help reduce costs. At the same time, reinventing business models and strategies by learning from new InsurTech business models could yield competitive advantage.
5. Rethink strategies to attract, develop and retain talent: Developing in-house talent and skill sets should be a strategic priority. Hiring from outside, attracting talent in key areas such as data & analytics and direct online marketing from outside industries will spur innovation.
Link to Full Article:: click here
Digital Insurer's CommentsWith life insurance premiums expected to grow 5% in 2017, and PC premiums half that, there is reason for optimism in Latin America. A pick-up in oil prices and stabilizing currencies, driving stronger car sales, would only help. Historically, high-growth potential has attracted global insurers, reinsurers and brokers to the region through M&A. With economic conditions likely to improve, international players may reinforce their positions, particularly in key markets such as Brazil.
Success in Latin America is about tapping underserved markets, and digital plays a huge role. Younger buyers, more mobile and digitally-attuned, cannot be educated and sold via conventional means. For example, in Brazil, Bidu enables consumers to compare and purchase insurance online, and Seguro Auto Jovem is targeting the 18- to 24-year-old demographic allowing drivers to track their behavior using a mobile app. With 70% of consumers now using mobile phones, insurers can use digital technology to reach a broader market at a more affordable cost.
Link to Source:: click here