SINGAPORE,Oct. 15,2024 --In the latest episode of the Asia InsurTech Podcast,the co-founder of Novo AI,a strategic partner of April Insurance and Tokio Marine,shed light on the growing concerns over how poor digital transformation is putting the Asia insurance industry at risk.
The episode explored how innovation is shifting the industry from a focus on distribution to backend transformation,and how failure to keep up with these changes is putting many Asian insurers' business at risk.
What's Happening with Asia Insurance?
InsurTech is evolving from focusing on customer-facing distribution improvements to revolutionizing behind-the-scenes processes. AI and automation are critical in transforming the internal workings of insurers. A significant innovation in this space is redefining how claims are processed,analyzed,and verified. Enabling insurers to replace outdated robotic process automation (RPA) solutions,creating new efficiencies and reducing errors in claims handling.
As customer expectations evolve,insurers are facing increasing pressure to adopt advanced technologies to remain competitive. The urgency of digital transformation has never been greater,especially in a fast-changing landscape driven by new technology and shifting consumer demands.
Why Are Asian Insurance Companies at Risk?
Many insurers in Asia are struggling to keep up with these changes. Claims payments are growing faster than premiums and profit margins are shrinking,creating a dangerous cycle of unsustainable profit margins. This imbalance is forcing many insurers to hike premiums,further straining customer relationships.
Additionally,fraud rates in some Asian markets are alarmingly high,with fraudulent claims reaching up to 35%. Outdated systems make it difficult for insurers to tackle fraud effectively,draining resources. Many companies also resist change,fearing disruption to their legacy systems,which only deepens their vulnerability.
Old technologies are unable to handle complex,unstructured data efficiently,leading to slow claims processing,increased costs,and eroding customer trust. Customers are turning to more tech-savvy competitors,further amplifying the urgency for transformation.
How Are The Industry Leaders Solving This?
Leading insurers are teaming up with startups to spearhead their digital transformations,leveraging cutting-edge technologies to modernize operations and stay competitive. By embracing change and overcoming internal resistance,these industry pioneers are setting new standards for the industry. Curious to know exactly how they're doing it?
We're sharing all the details in the Asia InsurTech Podcast here — tune in to get an inside look at their strategies and successes!