2020 insurance foresight
As we close in on a new decade, Asia Insurance Review is preparing a special treat, 2020 insurance foresight to be published in our December edition.
To offer a sneak peak, we have compiled the views of several industry leaders on what they think the biggest trends – opportunities and challenges alike – will be in the next year. Here, we offer you a sample of their profound insights.
“New technology will play a big role in driving growth by making insurance more accessible. We have seen carriers in emerging markets “leapfrog” the traditional distribution models and go straight to direct, online insurance products for example.
Meanwhile, analytics will continue to evolve leveraging developments in big data and artificial intelligence, to the benefit of insurers. Enhanced customer experience around efficiency and faster claims payment is going to add more value to the traditional insurance proposition and insurers will have deeper insight into risk selection.”
– Aon Reinsurance Solutions Asia CEO George Attard
“Insurance is gradually moving away from its traditional approach of selling straightforward protection products towards being focused on proactive management. While we see general insurers already using connected devices and sensors to reduce risk and improve loss management, we expect life and health insurers to adopt this technology in earnest during 2020.”
– Cigna International Markets Asia Pacific CEO Patrick Graham
“In 2020, we will see a necessary focus on moving legacy organisations to more contemporary, digital business models, with productivity and cost-out programs still in play. But leaders should also be making bets on what the next phase of disruptive trends will be, when they will hit and how to prepare.
Without this longer-term focus, decisions made in the coming year won’t build toward the 5- or 10- year vision that every successful insurer needs.”
– EY Asia-Pacific insurance sector leader Grant Peters
“Asian markets have been enjoying above-average economic growth for many years now. There are no indications of a reversal in this trend; on the contrary, the development of this economic region and the pent-up demand for insurance protection among the population are expected to be extremely vigorous over the coming years.
Regulatory changes are also necessitating adjustments in risk management, which should likewise serve to boost demand for insurance solutions. All in all, the Asian insurance market is growing in size and complexity. It is against this backdrop that Asia is increasingly becoming the focus of the (re) insurance industry.”
– Hannover Re managing director for Asia Pacific Michael Marx
“The trade wars, political and military conflicts, and events like Brexit, point to the increasing isolation of economies. As a result, political risks in doing business will likely be thrust in the spotlight. Access to markets where clients and/or suppliers are located in may be cut without warning. As a result, revenue streams may be abruptly turned off, affecting cash flows and profits. Payment defaults may also occur, resulting in a domino effect along the value chain.”
– Marsh Asia CEO David Jacob
“Asia accounted for 41% of the $222bn global natural catastrophe protection gap in 2018. In emerging Asia, the gap is almost 358% of the region’s property premiums. There isn’t enough insurance in place to deal with natural catastrophes that impact us.
Of course, it’s not just about insurance cover, we also need to work on more resilient societies where better planning and building standards help to mitigate risk as much as possible. This reduces the cost and increases the availability of insurance, so building a resilient system and society is a “must-do” in 2020 and beyond.”
– Swiss Re CEO reinsurance Asia Russell Higginbotham