My top 6 trends– A snapshot view

While I was sipping my coffee on-board my flight back to KL, I was running my head around what would the top 6 trends be in our industry. A generalist view for South-East Asia, without covering for too many country specifics. Note: Some of these are being done already sporadically

1.       Omni-channel won’t be a buzz word anymore – Customers would seemingly move between channels for interaction and choose their most preferred mode of buying. Real Chatbots with ML/AI, plugged on to customer and distributor portals will facilitate the sharing of information and greater standardization

2.       Hyper customization/hyper personalization and commoditization of lower involvement products – We would see both in equal amounts in my view. Lower involvement products would be commoditized but the solutions would be hyper customized across the lower and lower-middle income groups. For e.g. while PA, travel, home, etc. at the core are simple products, there may be country/segment specific customizations required. These would be largely delivered through digital and partnership channels

3.      Intermediaries will remain at the core of the more complex life insurance and commercial insurance space. These solutions require advice, trust (relationship selling) and multiple touch points. But, I do see lower involvement products like motor, travel, home, simple protection being sold more and more through digital channels. Intermediaries may sell these more as a part of the larger relationship they have with their clients. Most of the service would be done digitally, including around sales, service and most notably claims

4.       Liability as a product profile will significantly pick up in the days to come and will not be restricted to businesses. Professionals and individuals will be more aware of the gaps they are sitting on with respect to cyber, personal liability, professional indemnity and so on

5.       APIs will be available everywhere and this will foster more partnership driven sales for lower involvement products. Minimal friction and sales along with a linked product through a service provider one has more affinity with. For e.g. travel insurance through a telco player who can remind you every time you travel (Roaming packages)

6.       Simplicity will be more of a reality vs. today as people become more aware of the risks of complexity for all parties concerned

Bonus: As I have written couple of years back, I do see significant parts of insurance becoming like a utility bill on the back of greater stability around IoT (Connected cars, home, wearables, etc.). For e.g. USD x for travelling twice a month, USD y for driving my car 1,000 kms and 80% of it as a good driver (good driver discount), USD z for my health insurance (and 10% discount for walking xxxxx steps). So the bill could be linked to anything. Be it a telecom or an electricity company!

Note: These are my personal views and does not represent the views of the company I work for.