Just like in the financial services sector where words like fintech have been coined in the last few years as the sector embraced technology, the insurance sector has seen an emergence of the same through what is now known as Insurtech. InsurTech is a term applied to the many segments of new technology that are disrupting the insurance space: these include technologies such as smartphone apps, consumer activity wearables, claim acceleration tools, individual consumer risk development systems, online policy handling, automated compliance processing, and more. Lulu Rasebotsa, Managing Director at Liberty Life Botswana made these observations at the insurance and business seminar they hosted this past Thursday. According to Rasebotsa, it is through this new entrant to the industry that the pros and cons of ‘disruption’ have begun to play out and the fight for the triple prize ensues: The battle for satisfied customers, lower costs and higher growth. The seminar was held under the theme, “digital disruption and the impact of technology on insurance underwriting”. “Throughout all this, one thing is for sure; resistance to what lies ahead is futile. The ultimate winners will be those that are able to quickly let go of the past and embrace the future,” said Rasebotsa.
At Liberty and in response to the current dynamics, Rasebotsa said as part of their 2020 strategy they intend to become a market leader in technology by continuing to launch more innovative, market leading insurance products and increasing the quality and quantity of omni-channel touch-points. With the InsurTech, Rasebotsa said with digital disruption wave now in full swing, only the nimble incumbents will survive in the face of stiff competition from new market entrants known as the Digital Attackers. Greg Becker, Business Development Actuary at MunichRe who was presenting on the importance of healthy lifestyle to insurance organisations, said the healthier you are the lower the risk and the lower the chance of claiming; the unhealthier you are the higher the risk and the higher the chance of claiming. “People are on a spectrum- they have different underlying probabilities of claiming. Fitness tracker apps are therefore going to be revolutionary in insurance underwriting. Insurance companies are keener to cover fit/healthier people because we know they live longer,” he said.