To attend to its corporate goals, satisfy its stakeholders and meet changing customer needs and expectations the organization faces pressure from the market (see Why modernize? – Pressure from the market) and internal challenges which may be favourably taken up by a modern core insurance system. These challenges or pain points are valid for the organization as a whole or specific to functional areas, as seen below:
In our blog Parametric insurance, delighting customers and carriers, we explained how this type of insurance, also called index-based, charms customers and carriers by offering them a simpler and more streamlined experience than traditional insurance. A straightforward “IF-THEN” type contract, stripped from complex wording, will trigger an (almost) immediate payment of claim if and when an insured […]
Traditionally associated with natural catastrophes, agricultural risks and other major events like pandemics, parameter insurance is on the rise and seeing its scope of application widening. An increasingly connected world and the data thereby generated constitute a favourable turmoil for the development of parameters to be used to trigger insurance covers of existing and new […]
The question is not how fast tech companies will become car companies, but how fast we will become a tech company.” This is how the board member of a global car company recently articulated the central issue facing most incumbents today: how to operate and innovate like a tech company
Microinsurance, a small-duration, low-premium, high-volume insurance product appeared at the end of the twentieth century as a solution to cover the risks of populations belonging to the financially weaker section of society, mostly in developing countries. For a small premium, low-income populations have access to financial protection to offset the negative impact of an unexpected event, accident, injury, illness, or death. As explained in Microinsurance: The Drive of Technology, technology is paramount to reducing transaction costs, making this insurance easily accessible to the most and achieving the volume necessary to turn microinsurance viable.
Microinsurance, a low premium, low margin and high-volume insurance has been the object of redoubled attention for a year or two. Why are insurers focusing their attention on a type of insurance uncommon in our more developed economies? What is microinsurance, how did it originate, and what is key to a successful implementation? While these are the questions we will answer in this article, in a future blog we will explain how it is being introduced in more mature insurance markets to innovate, as well as what makes a successful distribution strategy.
Having been a laggard in digital transformation, the insurance industry has much catching up to do. The ever-changing digital landscape is forcing businesses to turn on their “all-things-digital” mode. From transforming its front end to offer its customer the seamless digital experience they are looking for to optimizing its internal processes to be more reactive and more efficient, the demand on IT is growing. While in the past a waiting list of IT project was normal and acceptable, the appearance of more agile technological competitors getting the favour of a growing portion of consumers are forcing carriers to adopt bolder and quicker transformative actions.
We all know about the increased adoption of the cloud by every sector of the economy. Many things are said on the topic and the reason and benefits of this trend are not always clear to the non-initiated public.
Insurance is commonly thought to be slow and bureaucratic. Although the industry is transforming and this is changing, historically, all processes of the insurance value chain incorporated human intervention to a certain degree. While judgement and advice are necessary for some contexts, in many others human intervention limits itself to basic data input systems or to transcription from one system to another. besides being slow, these labour-intensive tasks have other inconveniences. They are prone to errors, expensive and probably not the most rewarding.
In The Metaverse – part 1: Should insurers care? I explained what the metaverse is, how Web 3.0 turns it possible and the hype around what Meta and Microsoft have defined as “the virtual world that will usher in the next phase of the internet”3. We read industry experts argue that NOW is the moment to reflect and act to play an active part and benefit from the metaverse economy that Citi estimates4 to be worth $8 trillion to $13 trillion by 2030.
