The motor insurance sector is facing a churn, as mass lockdowns have forced drivers off the roads and resulted in fewer vehicle sales thus hitting new premium income. The industry must increasingly adopt digitalisation to stay relevant and navigate the impact of the ongoing COVID-19 pandemic, said speakers yesterday, on the opening day of the Virtual Motor Insurance conference organised by Asia Insurance Review.
In his opening address, Mr Dominique Roudaut, head of Asia Insurtech Partnership/Innovation Solutions/Personal Lines, Hannover Re, said that designing a customer experience for the next normal was critical for insurers. Mentioning that the number of road deaths in Asia is higher than in Europe, he said that insurers can help in making driving safer and also ensure that customers get something from their insurance product every day and not once every few years.
“Whenever there is engagement, it leads to a delightful experience and a net promoter score,” he said. He highlighted the need for insurers to work on prevention and emerging behaviours to stay profitable and relevant. Hannover Re has developed an app that is mobility-centric, through which it educates and empowers its end users through constant engagement. “We regularly communicate with our end users through this app and update them on road safety and the weather conditions,” he said.
Speaking on the claims experience in the new normal, Mr Sebastian Tan, country director, Singapore & Regional Business Manager, APAC, of Merimen, said that insurers in Asia are enabling a digital touchless customer claims journey in the COVID-19 era. “Digital claims portals are achieving fast registration and reserving and freeing up traditional channels,” he said. He mentioned how insurers today outsource the document upload function to the customers directly, as the insurers automate document processing, thus saving considerable time and costs. “A digital touchless customer claims journey can be achieved with new tools and technology for better customer engagement,” he said. To be successful, he said, insurers must change their legacy mindsets and begin small.
In his presentation on the future of claims during the COVID-19 pandemic, Mr Thomas Sam, Senior Manager, EY Consulting, Business Consulting – Insurance said that in future claims must be customer-experience driven, technology and data-powered and partnership enabled. He mentioned how COVID-19 has accelerated the need for a digital claims ecosystem that has minimal in-person interaction. “A touchless claims operating model is one in which a majority of the claims are processed in a paperless environment enabled by intelligent automation, AI, analytics and InsurTech with zero touchpoint,” he said.
A panel discussion on the next generation of motor insurance highlighted the critical role of AI and telematics in driving the segment in the future.
The two-day conference, with the theme “Rethinking Motor Insurance for the Next Generation of Mobility” ends today.