As the CEO of an insurance cooperative, you may be interested in the latest trends in the insurance industry:
- “Insurance digitalization rides e-wallet boom” (Inquirer) 1
- “Embedded Insurance Transforming the Way Forward” (Tata) 2
Citing a global survey, the first article reports that banks and financial technology firms are expanding their offerings of insurance products through digital platforms, as they scramble to corner a greater share of the e-wallet market.
The survey found that digitized insurance is already widely popular with global consumers, and financial service providers are building trust and loyalty while unlocking new avenues for growth by offering customers simple, relevant, and affordable insurance protection options embedded in their digital customer journey.
This is a global phenomenon, with companies in Asia and Latin America investing heavily in these digital insurance capabilities.
In Asia, 60% of consumers are interested in purchasing more insurance and 43% believe that digital is the obvious way to buy it. Further, in Asia, 64% of consumers expressed high levels of trust in purchasing insurance from established banks and 57% indicated the same from established insurers 1.
The second article discusses how embedded insurance is transforming the way forward for insurers. Embedded insurance allows customers to cover specific risks, foregoing unnecessary coverages, thereby making it more cost-effective.
Insurers must adopt an ecosystem model to offer embedded insurance products, which will entail partnering with insurance-as-a-service [IaaS] platforms that will in turn integrate with digital platforms.
Successful transition to embedded insurance will require firms to integrate the three key building blocks of data mastery, product development, and technology, reinforced by effective governance 2.
In summary, both articles highlight the importance of digitization in the insurance industry.
The first article focuses on how digitized insurance is already widely popular with global consumers and how financial service providers are building trust and loyalty while unlocking new avenues for growth by offering customers simple, relevant, and affordable insurance protection options embedded in their digital customer journey.1
The second article discusses how embedded insurance is transforming the way forward for insurers by allowing customers to cover specific risks at a lower cost through an ecosystem model that integrates with digital platforms 2.