They expect digital technologies to have a modestly positive impact on their premium growth in the next 2 – 3 years.
Only longer-term a more sizable contribution to growth is anticipated.
Against this background most ASEAN insurers concentrate on digitising their existing value chains, investing about 1 – 2 per cent of their overall revenues into digital initiatives.
SPOTTING THE QUICK WINSExecutives spot quick wins in digitising their distribution and marketing processes as personal lines products exhibit a higher transactional frequency and standardisation than commercial lines.
Fundamentally, the ASEAN insurance markets continue to profit from the region’s strong economic growth momentum.
Driven by technology savvy populations, with low median ages, insurers are seen to benefit from the region’s growing middle classes and their appetite for personal lines products.
INCREASING SOPHISTICATION‘ASEAN insurers are faced with a dilemma,’ says Zainudin Ishak, President and Chief Executive Officer of Malaysian Re.
‘Our consumers’ behaviour is increasingly shaped by digital technology. They expect immediate transactions, access to transparent information and instant gratifications.
‘The increasing sophistication of their purchasing behaviour presents opportunities for insurers as product offerings can be efficiently customised and scaled up.
‘While digitisation will boost revenues and reduce costs, the region’s insurers need to upgrade their legacy systems and improve their access to data to transition to the sophisticated technologies essential to sustain their long-term competitiveness.’
PROSPECTS FOR GROWTH
This is the third edition of the ASEAN Insurance Pulse produced and co-authored by Schanz, Alms & Company on behalf of Malaysian Re.
Launched on the occasion of the 12th ASEAN Insurance Congress in Bali, Indonesia, it focuses on the state of digitisation of the region’s insurance players.
The survey analyses the impact of digitisation on the region’s US$ 31 billion non-life insurance markets and their prospects for growth and profitability.