The insurance industry needs to embrace digitalisation and technological transformation to keep up with the pace of change in an environment of disruption, said speakers at the Strategic Issues Conference in Bali.
Mr Ahmad Nasrullah, Director of Insurance and BPJS Kesehatan Supervision, Financial Services Authority, delivered the opening address, reminding delegates that technology will continue to advance rapidly.
This can be both good news and bad news, and it is up to insurers to stay relevant. New technologies will open up new markets and new opportunities. However, it will also put pressures on budget and resources, and those who fail to adapt will be left behind, he said.
Catering to today's consumers and workforce
Other than technology, insurers also need to transform to cater to the demands and needs of today's consumers and workforce.
Mr Wahyu P Wibowo, Managing Director, Chief Learning and Development Officer, Prudential Life Assurance Indonesia, said that in the past, it was a one-size-fits-all, push, and classroom approach in training and development.
While there is still a need for face-to-face elements, learning needs to evolve to become personalised, pull and on-the-go through digital platforms, said Mr Wahyu who heads PRUuniversity, which serves over 277,000 agents and 2,000 employees over 161 cities in Indonesia.
This point was also highlighted by Dr Jung Kee Hong, Head of Partnership (Financial Institutions) & Regional Marketing Projects, AXA Partners Asia.
The life cycle changes of a consumer were highly predictable in the past. They studied, graduated, got a job, got married, had kids, and retired.
But it is no longer so. Some may choose not to get married, some may decide not to have kids, some may continue studying, and some may no longer wish to get a job, opting to start a business instead. Life stages are no longer predictable, he said.
So the key to winning is to know the customer better, and be the most successful in creating a positive customer journey, he added.
It starts at the top
And it starts at the top to be successful in adapting and transforming in an environment of disruption.
Dr Chan-Cheong Siew, Director, Strategy&, Part of the PwC Network, said successful transformations have interwoven elements of strategy, ops and culture. But most companies' strategies are surprisingly unclear.
According to their survey of 500 executives from around the world, 83% said their strategy is not well understood across the organisation.
Dr Leroy Chiao, Former NASA Astronaut and International Space Station Commander, said the leader sets the culture.
Avoid complacency. A leader must always question what can be improved and have the character, integrity and will to do the right things, he said.
The Strategic Issues Conference 2018 was organised by LIMRA and LOMA, with Asia Insurance Review as the official media partner. The two-day conference ended yesterday.