For almost a year, the operative word has been PROTECTION: shielding oneself, family members, coworkers, and acquaintances from the pandemic’s harsh and sometimes lethal effects. As we reflect on the challenging year that was, we are mindful of the need to protect lives and property. In a previous piece, I reviewed how life insurance firms performed in providing the correct products and services to their customers throughout the epidemic.
What about the industry of general insurance products? What was their reaction and how did they protect the insured? Property (houses, commercial buildings, factories, etc.) insurance, motor cars, airplanes, ships and cargo insurance, and personal accident insurance are all examples of nonlife insurance.
Despite the challenges experienced during the year, according to data given by the Insurance Commission (IC) website, nonlife businesses’ gross premiums issued for 2020 declined by just 9% compared to 2019. Given that offices were closed for a period of time, we had expected a much higher decline.
The IC made proposals to include insurance among the businesses exempted from quarantine in order for companies to be able to meet the needs of the insuring public even with a skeleton workforce. The businesses eased some of their premium payment and claims-handling restrictions, allowing for longer grace periods in paying policies and more straightforward claims-handling procedures.
Insurance protection remains in the minds of the clients since organizations can respond quickly to the needs of clients and producers, even if some employees work from home. They might engage in a live chat with the sales team to express their issues and troubles.
Online, problems are quickly remedied. To discuss terms and conditions before the epidemic, one had to either go to the corporate offices or meet in a coffee shop. It will come as no surprise if, in the future, the business will be conducted online using the infrastructure provided by these companies.
In the year 2020, the Philippines General Insurance Industry witnessed some ground-breaking concepts. These ideas give insurers a preview of what they should expect in the future. Nonlife Insurance firms will have a plan in place based on last year’s advances in 2021, and they will strive to execute it flawlessly.
The following are some of the things that may be expected from the Philippines General Insurance Industry in 2021.
InsurTech is on the rise
The ability of an insurance firm to integrate technology into its processes will determine customer acquisition, engagement, and retention. InsurTech will emerge from FinTech’s shadow and establish its own identity. Insurance businesses will gain in the long run by investing in relevant technologies.
Accelerating Digitization Process
Customers in the Philippines are no longer unfamiliar with terms like net banking, online wallets, cashback, and other digital jargon. In 2016-17, the groundwork for a cashless economy was laid. In 2018, digitization will shift gears, accelerate, and have a beneficial impact on insurance services. Consumers in tier 1, 2, and 3 cities will be able to obtain insurance more readily thanks to digital distribution, which will cross graphical barriers.
The Internet of Things (IoT)
The Internet of Things (IoT) is a network of physical items that are connected by technology and may share data. In 2018, the insurance business will profit from its application by better knowing customers. Telematics devices fitted in vehicles, for example, can provide information about a person’s driving habits. This information can be examined to determine the risk profile and charge the appropriate insurance premium.
Analytics & Big Data
With the use of Big Data and Analytics, customer behavior can be forecasted. Insights from precise client profiling will be fruitful. It will not only help you gain new consumers in the new year, but it will also make cross-selling easier. Because of Big Data & Analytics, customized marketing communications can be aimed at a niche population that has been narrowed down.
Customers who shop online are accustomed to a user-friendly e-commerce experience. Buying a t-shirt online isn’t as difficult as it once was. When it comes to obtaining insurance, customers want the same level of simplicity.
A potential customer’s purchasing journey will be aided by simple product offerings and a clutter-free interface. The entire insurance cycle will be made exceedingly convenient, including researching, purchasing, renewing, and claiming.
To underwrite risks efficiently, traditional underwriting techniques will be revised. Insurers will be able to more correctly underwrite risks by utilizing technology. They have the ability to transition from generic price to customized pricing.
Blockchain is a distributed ledger technology
Simply put, blockchain technology allows for the secure storage of structured records. Transparency and fraud detection will be ensured. This self-managed technology cuts down on redundancy and boosts productivity. Insurers want to investigate this technology in 2021, while it is still in its infancy.
Innovations in Social Media
Popular social media platforms have acquired traction, while new ones are gaining a following. Targeted and imaginative social media advertising can help you gain new customers. Social media platforms are a dynamic marketplace where insurance companies may interact with their customers in a fun and engaging way.
2021 Will Be Prosperous
As we look forward to what 2021 may bring, it’s important to realize how uncertain our world is. We wouldn’t need insurance if it wasn’t. Uncertainty is essential to our survival.
What major events do you think will send shivers around the world in the next 12 months? political swings, economic surprises, technological advancements, a new pandemic? We have no idea. However, major trends that have emerged in the aftermath of the COVID-19 epidemic can be identified.
Unforeseen global or regional events may still have an impact on the progression of these emerging trends, but they’re already gaining traction. The pandemic has hastened the progression of many of them. Early detection will allow insurers to better match their operations with their client’s evolving needs and supply new, potentially lucrative goods and services.
For insurers, the aforementioned pointers are not new. In the recent past, they have heard of some, invested in some, experimented with some, and avoided others. Insurers will aim to capitalize on technological improvements in 2021 in order to have a successful year.