Page 25 - Insurance Times March 2022

data, which would enable ease in distribution by prefilling new growth engines and achieve operational efficiency. Asian
information, as well as more personalized, seamless markets, with its high economic growth rates, population
underwriting and pricing. It also requires partnering with sizes and low financial accessibility, means high growth
InsurTechs to form digital online distribution capabilities for potential for insurance. Digital transformation is likely to
small businesses and intermediaries inclined toward self- progress more rapidly in Asia, due to the region's
service. Main purpose of Building proprietary digital online demographics and mobile penetration levels, which will offer
distribution capabilities, while continuing to provide coverage potential new customers. How insurers respond to this
and service advice is also important. paradigm shift - to a technology-based digital economy -
through their own digital transformation, will determine the
The reach to customers is important which can be offered by competitiveness of future insurers.
joining or creating third-party alliances for access to real-
time data exchange through the Internet of Things (IoT) As the technological innovation happens across industries to
devices and sensors to add value by providing more frequent create an optimal client experience, success-driven insurers
and meaningful client touch points, joining or creating can no longer remain locked into 20th-century product
ecosystems that enable sensor technology and other services development capabilities. Insurers must knock through long-
to shift underwriting focus from risk coverage to prevention, standing challenges and transform in line with the constantly
enhancing customer experience and value for both evolving marketplace for producing their company standards
consumers and insurers. in this highly competitive environment. The emergence of
ICT-oriented platform companies and Insuretech will trigger
Each product should provide the essential result. So in order digital transformation and competition within the market.
to get that result, it should be streamline. It can be achieved Insurers and market players must redefine customers and
by proper Product life cycle. It requires implementing markets to address with this competition. In this digital age,
technology infrastructure upgrades, either on proprietary
customers interact with insurers on their own and become
systems or by aligning with third parties, for agility and speed- active managers of their own risks and lifecycle assets - rather
to-market. Product life cycle correlates with making
than taking in advice and services passively.
intentional changes to modernize culture and attract
pioneering and innovate talent and diverse skill sets and While utilizing customer data linked to relevant industries
collaborating between functions, lines of business, and third- like healthcare and delivery services, insurers should provide
party business partners for crossover products and seamless new products such as on-demand products at reasonable
interaction. The method of leveraging modular product
prices and optimize the customer experience. Additionally,
structures to increase ease and transparency for customers digital transformation in a company's value chain and within
and facilitate more efficient product launch, maintenance,
the organization should be considered. This includes
and enhancement capabilities improves the final product.
collaboration with platform companies or Insuretech firms
to secure continuous customer channels and data utilization
A personalized/user-based experience and coverage can be
capabilities.
achieved by employing advanced technology, through
proprietary systems or by aligning with third-party providers, Reference
to offer service everywhere, any time, though any channel
Y Deloitte Article: Modernizing insurance product
and building upon modular product structures to provide development
tailored products and services based on client-specific needs
Y https://www.mantralabsglobal.com/blog/new-product-
and expectations for an ideal customer experience. The focus
development-in-insurance-actuary
on relying on cross-business line, cross-functional, diverse skill
set SWAT teams to quickly and flexibly create or revamp Y Accenture Article: Smarter, Faster Product Innovation:
products and services that customers will value creates a Strategic Imperatives for Property & Casualty Insurers
brand image too. Y McKinsey & Co. Article: Life insurance product innovation:
What insurers can learn from leading tech and consumer
Due to the Covid-19 pandemic, governments have cut interest companies
rates to the lowest levels in history. This raises concerns about Y https://www.mendix.com/blog/future-of-insurance-
the profitability of insurers, calling for insurers to search for digital-insurance.

The Insurance Times, March 2022 25