The insurance market is a large industry with various factors affecting the flow of events and trends that change the course of action. Over the years, technology has played a massive role in the industry’s evolution after the ill-effects of the 9/11 terrorist attacks. Other than the terrible terrorist attacks, global financial crisis have also played a part in the dramatic changes that took place in the financial services industry.
While insurance companies had their work in progress over the years with their insurance advisors processing large amounts of data that they had saved about their customers, channels, finances, and risks, technologies overtook the activities of organising and analysing the clients’ information. With the growing capabilities and increasing amount of information, big data came into spotlight. It became a need for both the government as well as the private sector to efficiently manage and analyse the increasing data of the large number of life insurance cover applications.
Mobiles are ubiquitous and form an essential platform to carry out insurance transactions. Though mobile communication is the “in thing”, we still have to see how they will work in case of a crisis, when so many people are trying to place calls or texts simultaneously.
Social Media of course, is a global platform and insurance advisors are proactively making use of social media to reach out to customers with various life insurance cover policies, well before a forecasted natural disaster takes place. This was not possible even a decade ago.
Furthermore, Insurtech is gaining popularity as it is set to create some real good opportunities for the insurance industry to promote innovation and evolution. On the other hand, it will also create grave competition, as entrepreneurs and start-ups aim to give better and smarter insurance solutions – which has been a trend in the banking sector previously.
Another thing to keep in mind is that the number of consumers expecting individualised insurance is increasing as it allows them to get an insurance for individual products that they want for a decided period of time. As insurance companies aim at modernisation and relevance to give out their insurance services, it is important for them to cater to the customer’s growing need for services that are more pocket-friendly and transparent. Individualised insurances require a new setup which include new technologies, systems, procedures and pricing; and as well as flexibility. These requirements differ from most legacy core insurance systems and insurance companies need to adapt fast to the new ways of doing business in this new age.