By: Sharon Paterson, CEO Infiniti insurance
The insurance industry is undergoing rapid changes due to increased competition from insuretech companies using innovative solution offerings that improve customer experiences. As the nature of risks changes exponentially across the world, insurance companies need to leverage technology for faster and more personalised services.
The industry is evolving, risks are growing, and therefore our approach needs to keep changing to adapt to the new environment and remain competitive. Young Customers expect insurers to go beyond risk-transfer obligations and offer end-to-end solutions, covering risk prediction, prevention and interventions.
In this environment, we must reimagine how we serve our clients, provide advice, and capitalise on new partnerships and innovative engagements. This collaboration will help us to create sustainable business models that drive growth and provide relevant solutions for clients.
The youthful population presents opportunities to thrive in the digital era
Digital channels are becoming the most popular channels of engagement for young consumers on the continent. The proportion of smartphone users is projected to grow to 75% in Sub-Saharan Africa by 2025, according to the data released by mobile industry insights company Global System for Mobile Communications. This is an opportunity for African insurers to leverage digital and mobile-friendly capabilities to rapidly increase insurance penetration and reach untapped markets.
With more than 40% of the region’s population under the age of 15, young consumers owning a mobile phone for the first time will remain the primary source of growth for the foreseeable future. This will further increase the opportunity to provide insurance for this untapped population via mobile devices. The industry will continue to see new start-ups leveraging mobile technologies to provide microinsurance solutions to the younger tech-savvy clients.
Successful Partnerships
As the insurance landscape constantly changes, at Infiniti Insurance we remain committed to supporting you to adapt to the changes and meet the insurance needs of our mutual clients.
We are here to help you succeed.
Company registration number: 2005/029823/06
An Insurer licensed to conduct Non-life insurance
business and an Authorised Financial Services Provider
FSP Number 35914
Using automation and AI to restore customers’ trust
Trust has always been at the foundation of insurance because client buys a policy trusting that the insurer will honour their commitment to pay out valid claims promptly. New technologies such as automation and AI are already changing how insurers interact with clients across the value chain by creating more seamless access and customer engagement from underwriting to processing claims.
These technologies further allow insurers to make faster, more informed decisions and improve operational efficiency. The industry needs to invest in innovation and transformation across the business to reduce the high operational costs as a result of outdated paper-based processes and legacy technologies. However, there is still a significant role for a broker to play in the transaction in my view. Brokers still need to work closely with clients and provide advice to help clients address emerging risks and maintain the trust relationship.
Attracting tech-savvy workforce
The insurance industry has historically been struggling to attract and retain young talent and workforce, especially in areas of specialisation such as underwriting, claims management, compliance and actuarial. We are likely to continue seeing an exodus of an aging workforce as some experienced employees retire from the job market.
This will present a challenge and opportunity for the insurers to recruit younger, and more digitally savvy employees. At this juncture, continuous professional development and training of young employees cannot be emphasised enough to meet the demands of a digitally savvy workforce and enable employees to thrive in an increasingly complex and dynamic market.
Compliance training is also critical, given the highly regulated industry in which we are now operating. As part of the industry’s skills and training programme, we must ensure that our employees know the latest legal and regulatory requirements to thrive in this new and complex market.
From this observation, it has become evident that insurers must start offering customer-centric added benefits to satisfy changing customer needs and preferences. The role of brokers is more critical than ever in educating clients about their exposures and the relevant cover for their needs. At Infiniti Insurance, we rely heavily on our brokers to continue educating our mutual clients that it is critical to remain adequately and sensibly insured during tough financial times.