Page 45 - Insurance Times November 2020

healthy lifestyle and create a sense of responsibility for incorporating discount and reward options might see some
maintaining good health, or policyholders may have to earn impact on premium."
them based on certain wellness criteria.”
To enrol in wellness programmes, policyholders should
The regulator has also allowed insurers to offer discounts purchase products that offer such benefits. All wellness
on premium and/or increase in sum insured based on the benefits are offered through digital mode, through
wellness regime. respective insurers’ mobile app. For instance, Max Bupa’s
Health is an app that manages policyholders’ fitness data
As insurers are yet to file revised versions/new products with
the regulator, it may take a while before the products are and health score.
updated for the additional benefits. Despite the improved Once downloaded and registered, you can sync your
benefits, policyholders may not see a significant increase in wearables such as Google Fit, Apple Watch or Fitbit with
premium. the mobile app; alternatively, the said app itself will track
your fitness activity.
Win-win
On the other hand, if you have enrolled yourself in a gym or
Amit Chhabra, Head, Health Insurance, Policybazaar.com,
says: “While there could be some costs involved in offering yoga centre, where your fitness activities are done, you will
wellness services, it would subsidise the claim cost for still earn reward points for that as well.
insurers as healthy customers would claim less.” iHealth Plus policy offers 2,500 points for a gym/yoga
membership per year.
However, Priya DeshmukhGilbile, Chief Operating Officer,
ManipalCigna Health Insurance, says: “The recent guidelines But do keep in mind that your policy selection should be
on wellness benefits have put in motion reward-linked based on coverage and not just on wellness programmes and
wellness features for healthy living, and industry products their benefits. (Source: BL)

Motor insurance market in Asia-Pacific to surpass US$257bn in 2023
The motor insurance market in the Asia-Pacific region is projected to grow from US$227.1bn in 2019 to US$257.8bn in
2023, in terms of written premiums, according to GlobalData, a leading data and analytics company. GlobalData’s
insight report, ‘Global Motor Insurance Market 2020’, reveals that the motor insurance market in Asia-Pacific is expected
to grow at a compound annual growth rate (CAGR) of 3.2% during 2019–2023, supported by increase in demand for
new vehicle sales from the rapidly growing middle class population.
Deblina Mitra, Insurance Analyst at GlobalData, comments: “Despite the current slowdown in growth due to COVID-
19 pandemic, several countries are showing signs of recovery with resumption in economic activity. China, which accounts
for 50% of the region’s motor insurance market, registered 16.4% growth in new vehicle sales in July 2020 on year-on-
year basis, indicating market recovery.”
Another key trend which can be observed in the motor insurance market is the pace of product innovations. New
insurance products such as short-term car insurance and pay-as-you-go (PAYG) products are being offered by motor
insurance companies to support sales at a time when car usage is low due to lockdown restrictions. For instance, insurance
start-ups such as UbiCar, Real and Kogan in Australia are offering pay-as-you-go insurance policies.
Ms Mitra continues: “The premium for such policies is based on actual distance traveled, recorded via telematics device
installed in the car. It provides greater flexibility as consumers will only pay insurance based on their actual usage
resulting in lower premium.”
China-based insurer Ping An has a dedicated innovation division – Ping An Technology to gain efficiency in claims
settlement and customer engagement. For instance, its ‘510 ultra-speed on-site city inspection’ launched in 2018
connects claims’ agents to accident site within 10 minutes. Furthermore, it provides claims management service using
AI-based image-recognition technology. This requires picture of damaged vehicle to be uploaded, which then does loss
assessment towards repair and other costs, within a minute.
Ms Mitra concludes: “Motor insurance industry is expected to see major changes over the next few years driven by
technological developments. Further advancement in motor industry in the area of connected cars and driver assistance
services has the potential to disrupt the motor insurance industry in the region.”

The Insurance Times, November 2020 45