4Jan

3 Insurance Trends that Are Changing the Industry

The insurance industry has shown its ability to withstand challenges and change with the times in recent years. By using advanced digital technologies, insurance companies have been able to improve their efficiency and undergo positive changes.

Overall, the past year has had its ups and downs. While there were increases in premiums in both personal and commercial insurance and challenges such as crises and natural disasters, new companies entering the market struggled to effectively innovate in the industry.

From a “glass half full” viewpoint, we did see that ongoing competition encourages innovation. We observed a growing interest in cloud transformation (despite some delays). The emergence of modern ecosystems was also observed. In the middle of all these changes, carriers also grasped the importance of a diversified talent pool and gave hiring, development, and retention top priority.

We foresee three trends that will probably influence the insurance sector in 2023 and beyond, given the industry’s continuous struggles with issues like inflation, rising interest rates, climate change, and a skills shortage.

1. Emerging and Evolving Risks

Insurance companies find it challenging to navigate the risk landscape due to uncertainties sparked by international problems, governmental rules, and economic forces.

Additionally, these types of risks tend to be intricate and interrelated. For instance, extreme weather and natural disasters can create vulnerabilities for businesses and make the workplace hazardous and properties uninhabitable.

Another growing risk is cybersecurity, with a rise in the frequency and intensity of ransomware attacks. Cybersecurity is no longer just a matter of technology but a business risk as well. To address these interconnected threats, insurance companies must be quick to respond and adapt. This means being flexible and proactive in using tools like artificial intelligence, machine learning, and automation to prevent and mitigate risks. In the coming year, data management systems and decision-making tools will likely play a central role in helping insurance companies operate efficiently and effectively.

2. Tech Integration to Normal Life

Insurance companies are focusing on reducing costs and promoting long-term growth as they look ahead to the new year. Some companies are modernizing their technology systems, either by streamlining their legacy systems or adopting new technologies. Others are using insurtech solutions to enhance their offerings.

Ultimately, insurance companies are working to build flexible, scalable, and resilient technology systems that can support growth and add value. This may involve automating certain parts of the claims process, using data from third parties to better assess risk, or implementing digital customer service tools to improve satisfaction. By starting with a strong foundation, insurance companies can take advantage of these opportunities and continue to shape the industry in the coming year.

3. A More Human Experience for Clients

During difficult times, it’s important for insurance companies to remember the emotional impact their actions have on their clients. Customers often want more communication with their insurers, especially when they are in need.

Engaging with agents and providing high-touch support can make customers feel heard and kept informed. Customers also appreciate being able to choose the communication channel that best fits their needs, whether it’s a website, smartphone app, or live conversation.

A poor customer experience can cause people to switch to a different brand, so it’s important for insurance companies to prioritize the customer experience and shift from a policy-focused business model to one that is customer-centric. Companies that do this well will likely find success in the long term. Providing personalized and omnichannel experiences can improve the customer experience and streamline processes.

23Dec

4 Key Insurance Trends in Asia 2022

This 2022, we foresee insurance providers reacting to the long-term effects of COVOD-19 while innovating more products for digital insurance.

Evolving consumer expectations, climate change, and virtual work environments will all be factors in the new landscape of the insurance industry.

Let’s examine some of the most interesting trends coming to the insurance industry in 2022.

1. Working to rebuild consumer trust. 

Insurers will center around efforts to bring back their customer’s trust in the industry as well as minimise losses in lieu of rising premiums. Providers will undoubtedly aim to improve client experience with better transparency and by streamlining the claims process to increase retention rates and loyalty.

As consumer expectations adjust, insurance companies will have to adapt their business model to new demands. Insurers who promise to provide customer-centric products and services will do better in 2022.

2. Diverse Product Offers

Consumer data has improved the way insurance companies develop and market their products. Insurance providers will be looking into consumer behaviour based on how they search and research insurance products online.

By offering a diversified range of products, brokers will see that they can acquire more customers from existing policyholders with little extra effort. Essentially, products will become highly customised to fit a wider range of needs by high-conversion leads.

3. Insuretech on the rise

Statistics from McKinsey indicated that tech-based insurance funding increased year-on-year consistently since 2017 reaching an estimated high of €8.7B this year.

Throughout 2022, the launch of digitised insurance services including automation and AI will see a surge as more providers gain new knowledge in technology. Mobile-optimized apps that allow customers to choose policies or update existing plans will be observed globally.

In addition, products that focus on cybersecurity insurance will see exponential development in 2022.

4. Sustainability and Eco-Consciousness

It’s not just the insurance industry but all industries have been presented with increasing pressures to place climate and environmental issues at the forefront of business operations and processes.

Whether it’s zero-carbon emissions by 2040 or products that support environmental protection, decision-makers will need to provide clear and specific solutions for this crisis.

Need help in finding the best personal or business insurance in Hong Kong? Get in touch with us today.

14Jan

2019 Global Insurance Trends: What to Expect

The advent of modern times has brought about new workarounds to various issues at hand. However, it comes as a double-edged sword in the case of insurance or business, which are also hounded by new issues of the last decade.

Organizations work like clockwork and will stop at nothing to catch up and still make waves in the modern world. And as modernization goes, there is a need to understand the trends to follow this year to properly take on these newly-presented challenges.

Blockchain and Cryptocurrency explained

The previous year has explored (and exploited) the notoriety behind these two words.

Blockchain often described as a “distributed ledger”, is by literal means, a chain of digitalized information. The blockchain is the main gear that makes “bitcoin” tick. Bitcoin is the very heart of cryptocurrency and is by far, a more familiar term with the masses.

Some corporations are eyeing blockchain as the next form of technology of use. However, some have yet to jump to the bandwagon as it is still slow in traction because of the lack of familiarity and the cost of upgrading systems.

The future: AI and Driverless cars

What was once a mainstay of sci-fi fiction is nowhere. Even if the thought scares you, there’s nothing else to do but to take advantage of what’s already in store.

Automobile accidents and other road-related problems are complicated even after the incident. Insurance companies and manufacturers scratch heads when it comes to the legality of things. However, with the arrival of driverless cars, and the absence of human control that comes with it, there will be a shift when it comes to drafting insurance policies.

Artificial Intelligence has also reached new heights this year. A concept already baked since before the dawn of the 21st century, it has opened new avenues in the industry, such as from customer service and communications to advanced “chatbots” that are all over the web for different purposes.

“New is always better”

Old business may have a few tricks up its sleeve, but technology and the internet will always have their own edge. As for the case of commoditization, for example, there are some net pages called “aggregator sites” which provide the consumer comfort and ease when it comes to comparing prices. The advantage isn’t always with the one who offers the best products: but with the one that provides the best user experience.

As far as globalization trends go, for example, corporate giant Amazon has been involved in rumors regarding discussions with certain insurance executives in the United Kingdom. This move, for example, can cause a big shift as the entry of a big corporate entity when it comes to business may cause changes even in this specific field of insurance.

The gig of the “Gig Economy”

Everything these days comes through an “on demand” service. Airbnb and Uber are just the starts of the many items on this list. The heart of these services rests on the idea of a “gig economy.” It isn’t just them either: Even P2P or Peer-to-Peer based activity of several online based platforms are making waves. The best strategy is to be aware of how services like these can change insurance policies and separate what functions as commercial to personnel policies, and/or to add them as “add-ons.”

For inquiries on insurance for expats living in Hong Kong, get in touch with us today.