Every article you read of late has some relation to technological advancements, changing customer expectations and regulatory developments. As we look ahead, it is essential to anticipate the trends that will shape the future of insurance, in particular the intermediary. Here are some of the FIA’s predictions.
Personalisation and customisation
As clients become more tech savvy, they expect personalised and customised insurance solutions. Product providers are leveraging data to gain deeper insights into risk and intermediaries should leverage the data to better understand client preferences and behaviour, allowing intermediaries to do what they do best – offer tailored products and pricing.
Cybersecurity
With the increase in frequency and complexity of cyber threats, cyber security will be a critical focus for product providers, especially where binders and outsourcing arrangements are in place. The rise of digital platforms will make industries (including the Financial Services sector) more vulnerable and therefore we should increase our focus on developing more competitive cyber risk products relevant to all business types, especially SMMEs.
Regulatory developments
The regulatory landscape will continue to evolve to keep pace with industry advancements. Regulatory bodies such as the FSCA will engage with associations to develop frameworks and guidelines to address the challenges associated with emerging risks and technologies. Regulations focusing on consumer protection, cybersecurity, transformation, and systemic risks (such as Grid Failure) will shape how we manage risk and protection gaps into the future.
Increased adoption of insurtech
On our recent roadshow, we shared with members how insurtech companies are revolutionising the insurance industry. We must expect an increase in the adoption of technologies to streamline operations, improve underwriting process, reduce the cost of insurance, and enhance the client’s experience. Intermediaries should not exclude a digital strategy irrespective of the size of the company; the industry is becoming more competitive. Intermediaries must adapt to the evolving landscape and leverage digital transformation to stay relevant, meet client needs and drive business growth.
The insurance industry is prepared for a bright future. With the advent of technological advancements, regulatory changes and changing risks, all stakeholders have an opportunity to transform their operations. The industry’s resilience, adaptability, and commitment to protecting clients from economic uncertainty and risk, will create new opportunities for growth and contribute to the overall stability of society. With a positive mindset, we can build a future that is secure for all stakeholders.
