Middle East Insurance Review: Cognizant’s Global Delivery Head for Insurance Says Technology Would Help Future-Proof the Buy and Sales Cycle of Insurance Products in the Middle East
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“Technology would help to future-proof insurance processes, particularly the buy and sales cycle of insurance products in the Middle East,” says Arun Baid. “Online sales are currently ranked third in the region by industry studies and most of the growth is enabled by consumerization trends among young, internet savvy population and reduced channel costs.” Excerpts:
“With digital technologies becoming more mainstream and businesses adopting them at scale, the potential impact of these technologies is quite significant and is redefining the market by enhancing the brand presence of insurers. This is in addition to the traditional channels — as in the case of motor insurance — and is thus helping insurers penetrate into newer demographic such as millennials.
The increasing adoption of analytics is helping insurers trim acquisition costs and time, enhance conversion rates and upsell products. Technologies such as IoT, telematics and microservices are enabling insurers to identify selling opportunities and customize products. For instance, one large insurance company in the Middle East has launched an innovative usage-based insurance (UBI) product to positively impact driving habits by offering attractive discounts to safe drivers.
Furthermore, governments in the region have also started to realize the potential of InsurTechs and are encouraging investments in the area.
By harmonizing the digital and physical touchpoints, insurers will be able to transform themselves into trusted partners, while brokers will evolve as extensions of the digital value chain and will be equipped with tools to enhance collaboration and deepen customer engagements.
It is quite likely that the relationship between intermediaries and insurers will become more strategic and innovative. For example, intermediaries may help insurers customize products across specific channels based on their insights of the consumer market, or leverage collaboration tools to seamlessly enable and drive operational efficiencies across the value chain. In addition, disruptors such as InsurTechs, particularly online aggregators, will play a vital role in enabling the insurance ecosystem to evolve further.
Leading global insurers operating in the region have the potential to leverage their experience and use technology disruptively based on their extensive exposure, which, in turn, will lead to more innovative offerings and superior buyer experience.”
Click below to the read the article that first appeared in the December 2017 edition of Middle East Insurance Review (MEIR).
