Keeping a weather eye on the horizon
Data, technology, and a new generation of consumers and professionals will define the next 25 years of insurance in Asia. That was the message from the first morning sessions at the 25th Indonesia Rendezvous.
Otoritas Jasa Keuangan (OJK) Non-Bank Financial Industry chief executive Riswinandi officially got things rolling with his keynote address in which he stressed the importance of embracing technology.
“The technological leap is inevitable,” he said, adding that insurance will be overwhelmingly supplied by “tons of data” from AI, IoT, and sensors in smart devices.
He said the data sent by these devices will be used by actuarial databases to gain more insights into customer behaviour and risk profiles and would “yield better service value both for company and customer”.
McKinsey Lead for Indonesia Client Development Apung Sumengkar said insurers should not see themselves as standalone entities in the future, but rather a part of an ecosystem. He added that insurers should not to look upon InsurTechs as a threat, but potential partners to work with.
Adapting to the next generation
Mr Riswinandi also touched on how the market landscape will slowly change over the next 25 years, particularly with regard to changing demographics. Current parlance on demographic changes has focused heavily on millennials, but he pointed out that following the next quarter century, Generation-Z (those born from the year 2000 onwards) would start leading trends and force insurers to cope with their traits and characteristics.
“They are very futuristic, require personal interaction, and are even more tech-savvy than millennials,” he said. “The insurance industry should be more adaptable with their style to engage with its primary target market in the future.”
He emphasised the need for adaptability, saying that how insurers act upon disruptive changes will affect their success rate, and how fast they adjust their strategy and the involvement of proper technology will be crucial in their future business.
Taking the time to plan
When it comes to preparing for the future, Munich Re Singapore and Southeast Asia CEO James Park said people need to spend more time thinking about where the industry will be in the next 25 years, rather than dwelling on legacy issues.
He pointed out how in 25 years’ time, most people in the room would be retired and no longer working, and it would be critical to have a proper succession plan in place – embedding new skillsets into day-to-day operations, and attracting talent for the future.
The millennial’s view
The discourse on attracting future talents and leaders has predominantly seen insurers talk about how to attract millennials to come work for them. This time, two young millennials – university students who were winners of an essay competition organised by AAUI – were given the opportunity to take centre stage and voice their opinions.
Prasetya Mulya University student Michelle Tanujaya said one of millennials’ biggest concerns is that they are afraid to express their ideas as they may not be taken seriously due to their age.
Satya Wacana University student Maria Anastasya said millennials need to be taken seriously as they will be leaders of the future.
The two students also said millennials are averse to working with large piles of paper with lengthy sentences, and that going digital with more online apps would make the industry more attractive to them, and open a lot of doors of opportunity.
Honouring the past
Even with the focus on the next 25 years, there was time to honour the last 25, as Mandiri AXA General Insurance Commissioner Frans Wiyono paid tribute to the three founding fathers of the Indonesia Rendezvous – Mr Teddy Hailamsah, Mr Peter Meyer, and Mr Munir Syamsuddin.
Mr Wiyono presented video interviews with the three men as they talked about how the current iteration of the Indonesia Rendezvous came to be since its inception as the Batam Rendezvous in 1994.