There’s a lot of talk in the market about the disruption that technology is bringing to the insurance industry. Those firms that embrace this disruption rather than see it as a threat stand to reap huge rewards over the next few years. After all, our industry has always run on data. It’s the lifeblood of insurance. Many in our industry are embracing technological change.
According to Gartner Research, over half of C-suite decision makers within insurance have increased their technology investments in 2023. A recent Novidea survey of brokers, carriers and MGAs revealed that 41% of respondents plan to change their management platforms and policy administration systems within the next 12 months. In Singapore this percentage leaps to 63%, the highest of any region in the survey.
Empowering brokers and carriers to increase their value
Clearly, for global brokers and carriers looking to do business in Asian markets, technology is key to success – as long as it’s the right technology. We know from our survey that global brokers and carriers are already grappling with legacy technology, with up to five different systems on average, with 29% of companies using six or more. However, without proper integration and governance, this leads to inefficiencies and increased operating costs. Many of these businesses are crying out for born-in-the-cloud end-to-end broking platforms. Those that do so get four powerful benefits. Firstly, they give brokers and carriers a single view of their entire business.
Secondly, they empower brokers and carriers to increase their value to customers by making it easier for them to do business. Thirdly, they drive operational efficiencies, lowering running costs while optimizing margins. Fourthly, with fully enabled APIs, these platforms allow brokers and carriers to build a truly connected technology ecosystem.
The many benefits of digital transformation
A successful digital transformation onto a best-of-breed platform is truly transformative for the entire business. With a 360-degree view of all customers and stakeholders, brokers and carriers can see their entire relationship with any customer and any stakeholder with just a few clicks. Combining this policy administration information with real-time management information, brokers and carriers can see at a glance where customers could benefit from extending their coverage or switching to different policies and providers. This makes cross selling and upselling a breeze.With API-enabled integration, firms can integrate other software tools with the platform, making for much smoother operations. And all front and back-office operations are linked in real-time, which makes transactions smooth and instantaneous, from quoting to processing policies, accounting, and claims management.With everything hosted on a secure, cloud platform, this also allows for true scalability – as well as real-time access from any location 24/7.
Streamlined cross-border operations will drive huge revenue increases
These benefits are more than just theoretical. Several of our global broker and carrier clients are in the process of consolidating their existing systems onto a single platform, including in Asia, enabling one combined management information view of the business across all international offices and all lines of business.
As a result of their new streamlined cloud-based tech ecosystem, these clients will be able to place its Asian business directly into its London Market operation. At the same time, these companies are able to work seamlessly and collaboratively across borders, generating more cross-selling and upselling opportunities.
Demand for tech is strong
So, the benefits of digital transformation are already being realised in Asia by those global brokers and carriers who are ahead of the technology curve. Despite Asia’s huge advantages as a global technology hub, there has been a dearth until now of best-of-breed end-to-end insurance management platforms to serve the market, including global brokers and carriers looking to integrate their operations, worldwide and between markets.
But demand for this technology in the region is strong. We know that from our survey. And the will to change is definitely there. If you’re not looking to embrace digital transformation in your business, you have to ask why not. The market is on the move, having reached a tipping point, and the outliers are already leading the change.
The choice for global brokers and carriers is between evolution and fossilization, and those who have chosen to embrace evolution in their Asian markets are evolving more rapidly than they ever thought possible.
Join leaders from Novidea in Hong Kong at Insurtech Insights Asia 2023
Ben Potts will be taking part in expert panel sessions live on stage at Asia’s largest insurtech conference, Insurtech Insights Asia 2023, at the Kerry Hotel in Hong Kong on December 6-7.