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2024 TRENDS


SE ASIA INSURANCE LANDSCAPE IN MIDST OF TRANSFORMATION

Philippine Daily Inquirer / 07:44 PM February 20, 2024



Southeast Asia’s insurance sector is undergoing a massive transformation to keep
up with evolving market demands and maintain competitiveness.

In the Philippines, where insurance penetration is at a mere 1.68 percent, the
industry is grappling with persistent challenges such as complexities, outdated
systems and regulatory hurdles.

However, amid these obstacles, the industry is forging ahead with innovation and
modernization with insurtechs emerging as one of the crucial drivers of this
change, fueling efficiency enhancements and elevating customer experiences.
Insurtechs have facilitated the seamless integration of insurance into the
purchase journey across diverse platforms, including e-commerce, fintech and
logistics.

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They have also made it possible for brick-and-mortar establishments such as
convenience stores to become viable distribution channels to enhance
accessibility and awareness of insurance products, bringing offline consumers
online.


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Insurtech firms likewise empower insurers to create personalized products,
meeting the unique needs of underserved sectors and effectively managing
emerging risks in digital consumers’ lifestyles today–these include pet
insurance, travel insurance, electronic and mobile phone protection, and even
micro, small, and medium business insurance.



Amid the industry’s continuous transformation, Singapore-based insurtech Igloo
identifies key trends poised to persist in 2024, further elevating efficiency
throughout the insurance value chain and propelling the ongoing momentum of
embedded insurance and personalization.

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AI-POWERED DATA ANALYTICS

Artificial intelligence (AI) is fast becoming the cornerstone of the insurance
sector, revolutionizing the way companies analyze data and assess risks.

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This year, we can expect insurers to increasingly leverage AI for advanced data
analytics, allowing them to gain deeper insights into customer behavior,
preferences, and emerging risks. By harnessing the power of AI, insurers can
enhance their risk assessment models, leading to more accurate pricing and
better management of uncertainties in the ever-changing market.

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BLOCKCHAIN FOR SMOOTHER CLAIMS PROCESSING

The sustained influence of blockchain in insurance underscores its pivotal role
in streamlining claims processing.

The decentralized and transparent nature of blockchain ensures efficient,
fraud-resistant transactions, expediting claims settlement and reducing
administrative costs. This enduring trend continues to revolutionize the
insurance landscape by enhancing accuracy, trust and operational efficiency.

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ZERO-CODE PLATFORMS FOR SWIFT PRODUCT LAUNCH

The adoption of zero-code platforms is set to streamline and accelerate the
launch of new insurance products across various channels.

These platforms empower insurance companies to develop, modify and deploy
applications without extensive coding, significantly reducing the time and
resources required for product development. This rapid deployment capability
ensures that insurers can respond swiftly to market demands, offering a diverse
range of products tailored to the evolving needs of consumers.


DIGITAL EMPOWERMENT OF AGENTS TO BOOST PRODUCTIVITY

As the industry becomes more digital, insurance agents are also set to benefit
from advanced technologies that enhance their productivity and improve customer
interactions.

In 2024, insurers are expected to invest in empowering their agents with digital
tools and resources, facilitating seamless communication, quicker policy
issuance and personalized customer experiences. The digitalization of agents
also contributes to an overall positive customer journey, fostering loyalty and
satisfaction.


SECURING AGAINST CLIMATE CHANGE THROUGH INSURANCE

Climate insurance has emerged in response to the increasing frequency and
intensity of climate-related events.

As businesses, individuals and governments grapple with the impacts of climate
change, insurance has become a critical tool for managing the financial losses
resulting from it such as damage to agriculture, infrastructure and personal
property.

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This trend exemplifies a proactive approach to mitigating economic losses,
aligning with the shift towards sustainability and resilience in the face of
climate uncertainties. INQ

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