Insurance Growth and trend in the future
Insurance has always been a superior product that boosts economic growth; products include automotive insurance, business insurance, and health insurance which is most significant and most utilized. According to the world bank, in the case of non-life insurance premiums to GDP, an increase of one standard deviation would have a larger impact on the economic growth of 0.39 percent, and one standard deviation increase in total insurance (life + non-life insurance premiums to GDP) would increase real GDP per capita growth by 0.47 percent.
Insurance provides security for personal investments, also covers finances for health needs to insurers. Insurance growth in Africa is inevitable, and opportunities exist with the rising demand for digital solutions. insurance providers are quickly stepping in. Competition among insurance companies procures innovation and disruption in the African insurance market, with insurers utilizing technology to target specific segments or services at a lower cost.
Utilizing innovative technology in Africa elevated total gross insurance premiums from 2007-2016 by 9.5%.Deloitte
In insurance, there is an effort to pursue digital transformation initiatives and satisfy modern consumer demands. Consumers are becoming early adaptors to the latest technology. According to Deloitte, utilizing innovative technology in Africa elevated total gross insurance premiums from 2007-2016 by 9.5%.
The Covid-19 Impact
Since the Covid-19 pandemic broke out, remote working has become more prominent. Remote working has its challenges to the infrastructure risks from cyberattacks, privacy, productivity, training, and skills. Covid-19 is quickening the digital transformation of business and operating models; the significant gap between customer’s expectations and insurer’s ability is forcing insurance companies to strengthen their internal communication as in this digital world – those who move the fastest will gain the competitive advantage. In the African region, one of the fast-growing insurance markets, the pandemic has forced the shift toward digital and remote channels.
Now, insurance companies must navigate a rapidly changing workforce, customer behaviours, and business environments from in-person interactions into virtual models. AI and automation will continue to drive change and rethinking the operating models end-to-end. Curacel, for example, is one of the key players in the African market, working with over ten insurance companies, providing them with a cutting-edge technological infrastructure for efficient claims automation and early fraud detection in the claiming process.
Customized Customer Experience
The insurance industry is growing globally, and at a fast pace, the future is looking bright for the industry and specifically in the African region. Still, there will be tough challenges that insurance companies need to overcome; adopting new technologies and digitization will no longer be a selling point; it will only be a force that drives the industry forward. According to Deloitte, by 2024, 33% of premium insurance volume will come from brand new propositions; this means that the industry is transitioning rapidly from product-led to service-led offerings that deliver an inclusive experience to customers.
According to Deloitte, by 2024, 33% of premium insurance volume will come from brand new propositions; this means that the industry is transitioning rapidly from product-led to service-led offerings that deliver an inclusive experience to customers.Deloitte
Customization of the experience will be a new competitive edge for acquiring new customers and customer retention. Customers know that digital communication with insurers means that personal data is collected, so they expect it to improve and customize their experience. Delivering an exceptional customer experience through websites, mobile apps, or social media is compulsory to the survival and growth of an insurance company.
In conclusion, insurance growth in Africa is proliferating, and digital transformation gave the insurance companies a platform to offer their services to a broader audience; thus, challenges are inevitable as there will be intense competition. For the insurance leaders, they must think more deeply about improving their strategies and select which geographies to target while driving innovation across products and channels, expanding services, and upskilling the workforce.
Talk to Curacel
To get started, Curacel is the leading Africa insurtech company when it comes to designing and developing products and solutions that enable insurance companies to delight their customers, improve employers ROI while constantly improving revenues. With Curacel, an insurance company can effectively manage its claims processing and reduce fraud and waste.
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