In 2024, the insurance industry will face challenges posed by inflation, geopolitical uncertainty, and rising property and auto insurance rates due to increased regulation. Technology has emerged as a key driver to help insurers navigate the volatile landscape.
a investigation A survey conducted by Gartner found that 58% of insurance respondents are allocating increased funding to digital innovation. This ongoing trend towards digitization and business automation accelerated by COVID-19 is predicted to continue through 2024, with InsurTech playing a key role in improving insurer performance through modern technologies.
According to industry players and experts, a number of technology trends will shape the insurance industry in Asia Pacific (APAC) and globally this year and beyond. These trends include the use of artificial intelligence (AI)/machine learning (ML), natural language processing (NLP) and cloud-based services that will enable improved operational efficiency and hyper-personalization. Embedded insurance is also expected to continue to grow due to rapid digitization, changing consumer behavior and growing collaboration between traditional insurers and technology companies.
Hyper-personalization of the insurance value chain
In APAC, hyper-personalization is being driven by rising customer expectations for tailored experiences. CapcoAccording to a recent insurance survey by , nine in ten (90%) policyholders in Hong Kong (94%) and the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) are willing to share additional personal data with their insurer in exchange for a range of benefits, including more personalized service, lower premiums and enhanced claims processes. The results are similar in other markets surveyed, including Singapore, Thailand and Malaysia. Respondents also said they are open to new ways of sharing personal data, such as wearing wireless smart devices or using smart devices at home.
according to NeutrinosIn response to this demand, the Singapore-based financial software provider and insurance company Rotating more and more It uses machine learning (ML) algorithms and gen AI to analyze customer behavior data and customize insurance products in real time.
AI-powered chatbots and NLP
Another trend is the use of chatbots powered by NLP and gen AI to redefine how insurance companies engage with their customers.
Gen AI enables insurers to automate tasks across the value chain, including helping customers and advisors understand their policies and helping sales agents recommend the right products.
Meanwhile, NLP analyzes vast amounts of text data from sources to streamline processes, accurately assess risk, detect patterns that indicate fraud, and ensure policy compliance. The technology can also be used to gain insights into customer preferences, market trends, and competitor strategies, aiding in data-driven decision-making and targeted marketing campaigns.
The insurance industry is seeing growing interest in Gen AI and NLP as consumers become more comfortable using chatbots. One survey found that 74% of users prefer They use chatbots when looking for answers to simple questions, and 64% of consumers cite 24/7 support as the most useful feature.
Promoting business efficiency
In the current economic climate, insurers in Asia Pacific are under pressure to operate more efficiently while still delivering value to their customers. Until now, insurers have focused on growth and customer acquisition and often outsourced back-office operations to reduce costs, but their reliance on cheap labor has hindered technological advancements.
However, in recent years, insurers have prioritized rethinking their operations, leveraging technologies such as automation and AI to reduce costs and improve efficiency.
2023 study A survey by Clearwater Analytics highlights strong interest in advanced technologies among insurance companies and insurance asset managers in Hong Kong and Singapore, with 86% of professionals surveyed in both regions predicting increased technology spending in the next year. Executives are prioritizing the implementation of AI, ML and cloud-based solutions, demonstrating their willingness to leverage cutting-edge technologies to improve operational efficiency and decision-making.
Insurance Anywhere
Another trend is Tata Consultancy Services and McKinsey & Company Embedded insurance is an approach that offers great opportunities for both insurers and consumers.
For consumers, embedded insurance offers convenience and a simplified process. Customers can access personalized insurance when they need it, with a quick sign-up process and hassle-free billing. For insurers, embedded insurance offers great potential for market expansion by providing an additional distribution channel and facilitating access to new and wider customer segments.
According to Tata Consultancy Services, embedded insurance is an effective way to address the insurance gap in Asia, and achieves this by offering a clear insurance product at the point of sale of other goods and services.
According to global consulting firm McKinsey & Company, insurers in Asia stand to gain significantly from participating in embedded insurance, especially by accessing new customer segments through fully integrated partnerships with non-insurance companies.
The consultancy predicts that Asia’s embedded insurance market could grow to US$270 billion in gross written premiums (GWP) by 2030. 66% of this growth is expected to come from the migration of GWP from traditional channels such as agents and bancassurance to embedded channels.
From June 4 to 6, 2024, InsurTech Connect Asia (ITC) AsiaOne of the largest insurance ecosystem conferences in the region, will be held at the Sands Expo & Convention Centre in Singapore, bringing together insurance industry incumbents, tech entrepreneurs and investors for a comprehensive, global conference.
Over three days, insurance industry participants will come together to share insights and trends in the insurance market and learn how to increase productivity and reduce costs through innovation and digital transformation.
Industry experts and leaders will dig into some of the biggest opportunities and most pressing challenges facing the industry, covering topics such as embedded insurance, AI and ML for digital transformation, creating an environment that fosters innovation across Asia, and the rise of the AI generation.
Attendees can look forward to an enriching experience tailored to their interests and goals: they will be able to connect with InsurTech entrepreneurs, explore potential commercial relationships, network with investors and other innovators, and learn about promising emerging InsurTech companies.
Insurtech trends discussed at Singapore ICT
Fintech News Network subscribers can get a special discount on ticket prices by using the code “FNN200.” Register here For events
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