Southeast Asia’s insurance sector is undergoing a massive transformation to keep up with evolving market demands and maintain competitiveness.
In the Philippines, where insurance penetration is at a mere 1.68 percent, the industry is grappling with persistent challenges such as complexities, outdated systems and regulatory hurdles.
However, amid these obstacles, the industry is forging ahead with innovation and modernization with insurtechs emerging as one of the crucial drivers of this change, fueling efficiency enhancements and elevating customer experiences. Insurtechs have facilitated the seamless integration of insurance into the purchase journey across diverse platforms, including e-commerce, fintech and logistics.
They have also made it possible for brick-and-mortar establishments such as convenience stores to become viable distribution channels to enhance accessibility and awareness of insurance products, bringing offline consumers online.
Insurtech firms likewise empower insurers to create personalized products, meeting the unique needs of underserved sectors and effectively managing emerging risks in digital consumers’ lifestyles today–these include pet insurance, travel insurance, electronic and mobile phone protection, and even micro, small, and medium business insurance.
Amid the industry’s continuous transformation, Singapore-based insurtech Igloo identifies key trends poised to persist in 2024, further elevating efficiency throughout the insurance value chain and propelling the ongoing momentum of embedded insurance and personalization.
AI-powered data analytics
Artificial intelligence (AI) is fast becoming the cornerstone of the insurance sector, revolutionizing the way companies analyze data and assess risks.
This year, we can expect insurers to increasingly leverage AI for advanced data analytics, allowing them to gain deeper insights into customer behavior, preferences, and emerging risks. By harnessing the power of AI, insurers can enhance their risk assessment models, leading to more accurate pricing and better management of uncertainties in the ever-changing market.
Blockchain for smoother claims processing
The sustained influence of blockchain in insurance underscores its pivotal role in streamlining claims processing.
The decentralized and transparent nature of blockchain ensures efficient, fraud-resistant transactions, expediting claims settlement and reducing administrative costs. This enduring trend continues to revolutionize the insurance landscape by enhancing accuracy, trust and operational efficiency.
Zero-code platforms for swift product launch
The adoption of zero-code platforms is set to streamline and accelerate the launch of new insurance products across various channels.
These platforms empower insurance companies to develop, modify and deploy applications without extensive coding, significantly reducing the time and resources required for product development. This rapid deployment capability ensures that insurers can respond swiftly to market demands, offering a diverse range of products tailored to the evolving needs of consumers.
Digital empowerment of agents to boost productivity
As the industry becomes more digital, insurance agents are also set to benefit from advanced technologies that enhance their productivity and improve customer interactions.
In 2024, insurers are expected to invest in empowering their agents with digital tools and resources, facilitating seamless communication, quicker policy issuance and personalized customer experiences. The digitalization of agents also contributes to an overall positive customer journey, fostering loyalty and satisfaction.
Securing against climate change through insurance
Climate insurance has emerged in response to the increasing frequency and intensity of climate-related events.
As businesses, individuals and governments grapple with the impacts of climate change, insurance has become a critical tool for managing the financial losses resulting from it such as damage to agriculture, infrastructure and personal property.
This trend exemplifies a proactive approach to mitigating economic losses, aligning with the shift towards sustainability and resilience in the face of climate uncertainties. INQ