- It is not a secret that insurance players have been picking signals all along of the impeding disruption.
- The industry pilots have been firmly warning the players of an imminent bumpy patch ahead. Some of the strongest signals of an industry that is clearly at a tipping point of a major technology driven evolution have been the proliferation of insuretechs and fintechs.
- These have been premised on digital apps and online delivery channels.
Prior to Covid-19, the insurance industry had, for a considerable number of years, been tipped to be a prime candidate for disruption largely because of its perceived rigidity and heavy reliance on traditional business models.
It is not a secret that insurance players have been picking signals all along of the impeding disruption.
The industry pilots have been firmly warning the players of an imminent bumpy patch ahead. Some of the strongest signals of an industry that is clearly at a tipping point of a major technology driven evolution have been the proliferation of insuretechs and fintechs.
These have been premised on digital apps and online delivery channels.
Just as the insurance players were warming up to this indisputable reality of a rapidly changing market place and progressively dedicating sizeable investments into modern technologies, tinkering with some digital platforms and automations, the pandemic checks in, fast and furious.
Long held and deep-rooted traditions, ways of life and work have all suddenly changed. The reality of working from home, reduction in the use of physical documents, movement restrictions, social distancing; all have presented major and immediate implications on the operations and delivery of insurance services. Faced with this sudden reality, the insurance industry, like many other sectors of our economy, has responded strongly with faster roll-out of digital driven solutions, value proportions and service to the insuring public.
Notable examples are the increased mobile insurance apps, wider uptake of digital motor insurance certificates and e-commerce driven self-service platforms.
Health insurers have rolled out telemedicine solution whereby diagnosis and treatment is delivered via an online platform.
This is then complemented by “meds-on-wheels” solution whereby the prescribed medicine is delivered at the doorstep of the customer.
The uptake of these services has been quite impressive.
Perhaps, more than ever before, the so-called digital wave that is sweeping across all sectors of our economy is fast ushering in a major and compelling conceptual moment.
Digital skill set for the human capital coupled with up-skilling and re-skilling, modern leadership style and corporate governance, rapidly changing consumer behaviour and increased awareness are all critical imperatives that organisations have to quickly conceptualise, embrace and harness.
There is a clear upside to it; digital solutions are not limited by traditional physical, geographic, demographic and social barriers some of which have for long contributed to the subdued uptake of insurance.
This then means that potential mega opportunities for business growth and insurance penetration awaits those that are going to figure it out faster and capture first mover advantage.
Like writer H.Jackson Brown Jr said “when you can’t change the direction of the wind, adjust the sails”. Our insurance industry is “adjusting the sails” decisively.