Asia continues to be the fastest growing market for insurers. It is by far the most populous region globally with a rapidly growing middle-class. Southeast Asia’s middleclass is expected to double by 2020.
This creates huge opportunities for insurers. For the first time, the majority of people will have a disposable income to spend. Furthermore, the lack of comprehensive social security in most South East Asian countries creates a need for pension, life and health insurance products. Pension and life insurance products are under pressure in most Western countries due to strict regulation and a period of low interest rates. In Asia insurers can benefit from booming economies and a tech-savvy population.
In order to fully engage with this emerging group of potential clients, insurers have to develop new products and services and rethink distribution channels. The classic agent network of Western insurers might not be the distribution channel of choice in Asia. Consumers are highly digital, many of them digital natives. A high smartphone penetration enables even people in rural areas to have access to products and services. Insurers can benefit from changing customer behavior by offering convenience as well as tailor-made solutions matching customer lifestyles and needs instead of following a one-size-fits-all strategy.
If insurers do not adapt to changing customer behavior and expectation, they will be overtaken by innovative competitors and tech companies. Investments into InsurTech startups and incubators are increasing worldwide. Innovation and startup hubs are emerging in Singapore and Hong Kong and are consequently rethinking the concept of insurance. Insurers need to be ahead of innovation in order to benefit from digital disruption.
How can Detecon help?
Detecon’s mission is to help insurers benefit from digital disruption and chart the waters of digital change. New technology and innovations are paving the way for a reinvention of insurance and the digitization of the industry. Advanced technologies such as IoT (Internet of Things) in combination with big data analytics are key enabler to tailor-made products and services that go beyond traditional insurance.
We at Detecon constantly receive new impulse and inspiration from our Detecon Innovation Institute, which is located in Silicon Valley, the epicenter of global innovation. Long-running project experience & relationships with leading innovation powerhouses such as Microsoft, Salesforce, Google, Intel, Cisco, and Juniper enable us to offer first-hand insights into emerging new products, services and key digital topics. And being part of the startup community puts us in close touch with the latest trends and innovations.
In Asia Detecon is connected with Fin- and InsurTechs as well as other innovative start-ups and disrupters in the information-communication-technology market. OTT services such as LINE and WeChat, for example, offer convenience to people living in mega cities as well as in rural areas and are changing customer behavior. They not only offer a communication tool but also e-commerce, and mobile pay functions. Detecon helps clients assess how this may impact their business model and how they can ensure access to their clients using latest IC technologies.
With our strong technological expertise alongside our rich experience in the insurance industry we are the perfect partner to prepare clients for the future of insurance. Detecon’s DNA is Information-Communication-Technology, which is the keystone of digitization, and our passion is digital transformation.
We offer comprehensive consulting services, based on a partnership approach and with an eye on practical implementation, especially at the interface between the business units and the IT department. Our services in this area range from strategic consulting to the re-engineering of business processes – in the sales and customer services departments in particular – and encompass all of the issues related to IT management.
Learn more about our service offerings