Insurance dynamics changes as digitalisation influences consumer choice

The insurance industry going forward is not going to remain the same as digitalisation takes deeper root in the way businesses are conducted, expert has said.

Oliver Bate, CEO of Allianz, speaking at conference in South Africa on the theme “Disrupt, Debate, Deliver” said there is profound transformation of the insurance industry wrought by digitalization.

“In today’s fast changing world, it’s critical to innovate quickly and to change course rapidly if necessary. The insurance industry, like other customer service industries, is transforming because of the all-encompassing impact of digitalization on our lives. Customers have new expectations, a growing number of disruptors are taking the stage and new megatrends, such as artificial intelligence (AI), voice-based smart assistants (i.e. ‘Alexa’), telematics, wearables and drones are fundamentally changing the traditional insurance model.”

“We are completely rethinking the way we serve our customers, not least because of the competition posed by disruptors from the fin-/insuretech space, who have an impressive facility with mobile technology and analytics. Today’s customers will choose a product primarily because it’s easy to use, transparent in terms of price and quality, and personalized – and because it’s available to them via the digital channels they want it from.”

“Digital comes naturally to African customers”

“While traditional markets, such as Europe, are struggling with their digital transformation process, Africa is digital by nature. Mobile is the fastest growing sector and innovation enabler on the continent with an expected 1.2 billion African subscribers by 2018.”

“By leveraging the internet and mobile penetration, African countries can leapfrog innovation. African customers will rightfully demand and drive insurance innovation in Africa as they expect offerings and channels to be fully digitalized. This, and the fact that rules and regulations are favorable for innovation in financial services, puts Africa in a great position to become the digital insurance leader of the future.”

To transform Allianz into a truly customer-centric, ‘digital by default’ company, the Group established a Single Digital Agenda. Allianz is spending over €700 million ($800 million) annually on shaping and orchestrating the digitalization of its 127-year-old business.

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