Page 15 - Malaysian Re Foresights issue 2
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MALAYSIAN RE FORESIGHTS ISSUE 2| JULY 2020
Malaysian Re as the national reinsurer aspires to Malaysian Re launched the Malaysian Insurance
embrace and adapt to all the changes that the future 5G Highlight 2019 in December last year which offers an
rollout will bring. Under the current fourth generation extensive and broad overview of the current
network, Malaysian Re has pioneered plenty of opportunities and challenges facing Malaysia’s general
initiatives to embrace the technological changes. The insurance market. One of the trends presented is
Central Administration Bureau (CAB) was introduced digitalisation and how technology has actively reshaped
and managed by Malaysian Re to facilitate the the industry. MIH findings, however, shows that 84% of
administration of facultative claims. In addition, respondents find tangible impacts from insurance-
Malaysian Re recently launched the eMacs system, a related ecosystems irrelevant.
new system to replace its outdated predecessor for the
Malaysian Re also launched its third edition of ASEAN
submission of outstanding claims reports and statement
Insurance Pulse 2019 in October 2019. The 3rd edition
of account for Voluntary Cession and Auto Facultative
highlights the impacts of digitalisation and one of key
Claims. This system is currently in use industry-wide in
findings states that 50% of participating ASEAN insurers
Malaysia with key enhancements such as the
in the survey spend only between 1 to 2% of their gross
notification, update information and settlement of large
premiums on digitalisation initiatives (excluding general
loss, coupled with relevant supporting documents will
IT expenditures).
be launched soon. This is in line with the Company’s
VCP-T20 strategy of providing value-added services that Both Pulse and MIH findings point to a large number of
would enhance our client experience. insurers in the region are still bogged down by legacy
systems, and hence unable to meet the data demands
Malaysian Re is currently looking into expanding the use
required for a meaningful migration to the sophisticated
of robotic process automation (RPA) which will leverage
technologies. Perhaps a more concerning issue is the
on new technology to optimise internal processes. RPA
indication that a significant number of insurance
includes the use of virtual workers, or software robots,
executives in the region are still trapped in the legacy
to execute business tasks similar to human users.
mindset and are unwilling to carry out greater
Following the rollout of 5G, the main appeal for
investment in technology. Malaysian Re is of view that
Malaysian Re will be handling of high-volume data
adequate investment in 5G technology holds the key for
actions at exponentially greater speed compared to the
insurers to productively monetise their consumers’
present.
behaviour that is being increasingly shaped by digital
technology, with opportunities for superior
customisation and scaling up of product offerings.
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