In a new report, insurtech Igloo comments on the trends shaping the insurance sector in Southeast Asia as it undergoes significant changes to address evolving market demands and stay competitive.
Faced with challenges such as complex systems and regulatory hurdles, the industry is rapidly adopting modern technologies. Insurtechs are notably at the forefront of this transformation, enhancing customer experiences and driving efficiency for sustainable growth.
Insurtechs have played a pivotal role in integrating insurance services into various platforms like e-commerce, fintech, and logistics, as well as enabling traditional retail outlets to offer insurance products. For instance, convenience stores such as Circle K in Vietnam now provide insurance services through QR code transactions.
These firms are instrumental in developing tailored insurance products, catering to the unique requirements of underrepresented sectors and managing the risks associated with digital consumers' lifestyles.
Looking ahead to 2024, Igloo highlights several key trends that are expected to continue influencing the industry. Firstly, the insurance sector is increasingly using artificial intelligence for advanced data analysis, aiding in deeper understanding of customer behaviour and risks. This technology enhances risk assessment models, leading to more accurate pricing and effective management of market uncertainties.
Blockchain technology also remains crucial in the insurance industry, particularly for its role in streamlining claims processes. Its decentralised nature allows for efficient, secure, and fraud-resistant transactions, improving operational efficiency and trust.
The adoption of zero-code platforms also enables insurers to quickly launch new products. These platforms allow for the development, modification, and deployment of applications without extensive coding, speeding up product development and enabling insurers to rapidly meet market demands.
Insurance agents are also benefiting from the digital transformation, with investments in tools and resources that improve their efficiency and customer interactions. This shift contributes to better customer experiences and loyalty.
In response to the growing impact of climate change, insurers are focusing on climate insurance to manage financial losses from related events. This trend highlights a proactive approach in mitigating economic impacts and aligning with sustainability and resilience initiatives.
Igloo emphasises the importance of personalised insurance in the region and the need for insurers to adopt these technological advancements.
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