Suncorp Group CEO,
Michael Cameron, has said that a “wave of activity” from disruptors and FinTech companies is heading towards the insurance industry which could “undermine the advantage,” established insurance players have in the market.
Speaking at Suncorp’s investor day yesterday, Cameron noted that insurance businesses continue to face pressure from market conditions as well as outside competition.
“Market conditions continue to be very competitive, as you know, there is regulatory and political uncertainty both domestically and essentially all around the world at the moment and we are, of course seeing a low growth, low return environment,” Cameron said.
“We are also seeing new competition start to enter the market and we talk about FinTech, I talk about InsureTech, but there is a wave of activity approaching that has the potential to undermine the advantage that companies like Suncorp have.
“We also see intense price competition from our normal competitors.”
Cameron noted that these factors present businesses like Suncorp with “a huge opportunity,” to create value for customers.
“In relation to the evolution, to address this opportunity, we are driving our existing business to creating value for our customers and the concept of non-price value is critical.
“We have moved from focusing on products to focusing on customer outcomes and getting more connected customers and this is where the basis of the platform or the marketplace that we have been working on is so critical.
“To make it easier to access and to navigate around Suncorp is critical, to give access to a wide range of products and services and other value tools, not only the things that we manufacture but things that other, third party companies manufacture.”
Mark Reinke, chief customer experience officer at Suncorp Group, also announced that the business would launch its “world-first” for the insurance industry this week
following a US$5 million stake in tech company Trōv.
“This week, we will launch a world-first insurance platform with our partner Trōv,” Reinke said.
“A single item insurance platform that allows you to cover the individual possessions and things that you really care about. You can do that from your iPhone, you can turn it on, you can turn it off, you can change the duration.”
Suncorp was the first worldwide to partner with Trōv in 2014 to help install Australia as a test market for the Trōv app which has been designed to offer customers, particular millennials, instant access to insurance for single items that are dear to them such as cameras, tablets and laptops.
