Page 35 - The Insurance Times January 2022

the company's credit product users are self-employed and the For insurers across the diverse markets of the Asia-Pacific
remaining 60% are salaried employees. region, it's a time of considerable opportunity, though it
varies in scope. In many ways, the Asia-Pacific region holds
Fostering rapid innovations and responding to new trends, the key to the insurance industry's future. It is home to
regulations, and technology will also require an agile way nearly one-third of the world's population, a few of the
of working. Insurers will need to shift from targeting large- fastest-growing economies and multiple countries with
scale developments while working in organizational silos to rapidly expanding middle-class populations.
working in co-located, cross-functional teams using a flexible,
test-and-learn approach. In agile ways of working, product Furthermore, China has rapidly become the second largest
development is done in short iterations (sprints) with economy in the world and is on track to become the largest
tangible results and a focus on continuous improvement. by 2030. The extremely high expectations of consumers in
Insurers should act now to plan for recovery from the the region for seamless and personalized digital experiences
pandemic and prepare for the shift to a new distribution inspire a great deal of innovation. Firms in mainland China
operating model. and other markets are experimenting widely - and delivering
impressive results - with new products, new distribution
Offering remote support to agents to improve customer models and new technology. The top performers are both
engagement before and after sales and adopting digital tools capitalizing on near-term opportunities and establishing a
to enable activity management and sales are critical to the strong foundation for long-term success.
successful adoption of the new model. Insurers that start early
can emerge from the crisis better prepared to provide their The Asia-Pacific insurance industry is still riding a strong
customers with the products and services they need as the growth spurt, driven by China but also buoyed by positive
world moves into the next normal. The global insurance performance in South Korea. Both premiums and penetration
industry faces a truly unique moment in its long history. have risen. However, some mature markets have struggled
as their populations age and consumer expectations shift. For
The fundamental disruption caused by the pandemic
years, insurers across the Asia-Pacific region have
equates to an opportunity for the industry to remake itself
understandably focused on seizing the growth opportunities
in line with new societal realities and market needs. Instilling
that have been presented by healthy economies and a
both operational excellence and cost efficiency across the
growing middle class.
value chain will be a difficult balancing act, but a necessary
one to free capital for investment. The decision to use a
In some markets, the focus on driving growth has left key parts
best-in class or best-in-cost approach will inform sourcing
of the value chain - such as underwriting, claims and other
strategies, with options ranging from shared services and
internal processes - lagging best-in-class standards. At the same
centers of excellence, to outsourcing, to value chain
time, digital capabilities have often been built on top of existing
disaggregation. Insurers will employ fewer people and
operations and without end-to-end digitization plans.
access more of the skills they need through external sources.
References:
1. https://www.netscribes.com/insurance-industry-trends-
outlook-2021/
2. https://www.mckinsey.com/industries/financial-
services/our-insights/insurance-
3. https://www.swissre.com/dam/jcr:ca792993-80ce-49d7-
9e4f-7e298e399815
4. https://www2.deloitte.com/us/en/insights/industry/
financial-services/insurance
5. https://www.business-standard.com/article/pf/non-life-
insurers-premiums-up-5-in-fy21
6. IRDAI Annual Report 2019-20
7. Newspapers & Journals.

The Insurance Times, January 2022 35