The post-COVID world has set the stage for innovation and ingenuity. Insurance customers and their rapidly changing expectations are helping to shift the industry standard more rapidly than ever before.
The Middle East, in particular, has hit the ground running toward becoming a data and insights-driven insurance industry region. In fact, its embedded insurance industry is projected to grow by 40.2% on an annual basis, forecasted to jump from an annual revenue of US$2,329.0 million in 2022 to US$7,763 million by 2029 (Markets). Thus, providers that are best able to service this region will likely have the lion’s share of the market in the near future.
Here are the six data centric trends you can expect to find within the Middle East insurance market in the coming months…
AI and automation. AI (Artificial Intelligence) implementation across various insurance data channels and business segments will be an integral factor in sustaining a competitive edge. With enhanced data processing capabilities in conjunction with advanced AI algorithms, enterprises will be able to reduce effort, time, and costs. Increased automation in policy servicing and claims management will enable faster and more personalized customer service, leading to improved cost optimization, enhanced experience, and operational excellence.
Sayonara, legacy systems! A digital transformation toward a modernized infrastructure is essential to retain the competitive edge in the market. Legacy systems deter innovation and are often more costly and inflexible than modern offerings. What’s more, they’re expensive to maintain, difficult to secure, and are generally unstable (The Rise). The power of cloud technology, however, is a more flexible, cost effective, and advanced choice (Wong). Its ability to log, maintain, and streamline information across an enterprise makes the use of predictive analytics within the insurance industry, possible.
Systech Solutions offers legacy modernization designed to support strategical, technological, and digital transformation journeys. This not only helps build customer retention, but also allows businesses to offer personalized customer service solutions to each individual customer. What’s more, migrating to an agile cloud infrastructure helps build a resilient architecture that allows businesses to support their growing business requirements and to speed their products to market.
Advanced analytics and drones. Drones will undoubtably make an appearance as a tool that frequents the insurance scene. Drone and imaging technology will allow for high-definition images to be taken remotely, helping brokers perform analysis and estimations of various properties, vehicles and more. An Australian Insurance company, for example, “was able to settle 90 percent of big loss claims within 90 days by deploying drones” (Perspective). Advanced Analytics – used to power drones and other offerings – will help to more effectively monitor and segment customers, adjust policies, and track model behaviors overtime. Collectively, these factors can help insurers take a more proactive and accountable role towards the longevity of their company.
Customer-centric digitization. COVID 19 was an accelerator for a series of new strategies to capture the interest and long-term loyalty of insurance customers. Customers desire intelligent and customizable platforms that can maneuver their rapidly changing needs and expectations. Servicing a customer – more than ever – is experiential.
In the same vein, Systech Solutions offers “Customer 360º,” an offering that enables business users to gain a holistic, deep understanding of their customers. This is not only impactful in boosting performance, but also empowers businesses to gain a competitive advantage in the market. As a byproduct of this solution, insurance firms can effortlessly identify growth opportunities and leverage their customer behavioral data for impactful strategic decisions (Insurance).
Blockchain is here. Blockchain technology stands to revolutionize the entire industry. It is highly effective in processing customer data in real-time across various insurance functions. It simplifies and secures the transfer of data, be it across an organization or their stakeholders. Its power comes from its versatility. It offers a wide breadth of data support from “identity management and underwriting to claims processing, fraud management, and reliable data availability”(Perspective). As a result, it effectively reduces operational costs, maintains data integrity, and secures the management of data.
InsurTech partnerships: strength in numbers. As the insurance industry continues to evolve, firms will likely partner with InsurTech companies to create the most diverse and innovative offerings available on the market. This will be mutually beneficial, as it will enable traditional insurance firms to capitalize on the rapidly evolving tech culture, while also enabling the tech companies to gain larger customer bases, funding and domain experience (Perspective). Their partnerships will help firms acquire the technology capabilities necessary to generate higher profitability, reduced operational costs, enhanced customer experiences, and business user collaboration.
At present, there are many factors that make the Middle East an ideal region to focus on. Whether it is gaps in regulation and supervision, fragmented market structures, or the “absence of products that conform with cultural/religious preferences,” there is an undeniable need for major change (Lester). Coupled with the increasing demands of customers, who desire personalized insurance care through the employment of usage-based and on-demand insurance lifestyle products,’ it is more necessary than ever to modernize.
Whether it is customer-led digitization, claims automation, or strategic partnerships, it goes without saying that an industry-wide, data journey evolution is on the horizon.
Explore Systech’s blog series to help you stay informed and up to date on latest innovations in the data and analytics space click here.
“Insurance.” Systech Solutions Inc., 18 Apr. 2022, https://systechusa.com/industries/insurance/
Lester, Rodney Ross. “The Insurance Sector in the Middle East and North Africa : Challenges and Development Agenda.” World Bank, https://documents.worldbank.org/en/publication/documents-reports/documentdetail/191531468110930768/the-insurance-sector-in-the-middle-east-and-north-africa-challenges-and-development-agenda
Markets, Research and. “Africa & Middle East Embedded Insurance Markets Report 2022-2029 – Growing Number of New Entrants Is Predicted to Drive Market Expansion.” Africa & Middle East Embedded Insurance Markets Report 2022-2029 – Growing Number of New Entrants Is Predicted to Drive Market Expansion, 23 Mar. 2022, https://www.prnewswire.com/news-releases/africa–middle-east-embedded-insurance-markets-report-2022-2029—growing-number-of-new-entrants-is-predicted-to-drive-market-expansion-301508919.html
Perspective, A WNS. “Top 5 Trends in the Insurance Industry.” Top 5 Trends in the Insurance Industry, WNS, 6 Mar. 2022, https://www.wns.com/perspectives/articles/articledetail/595/top-5-trends-in-the-insurance-industry
“The Rise of Insurance Digitization in the Middle East.” Making Way for Digital Shift in Middle East Insurance Market Comments, 7 July 2022, https://www.damcogroup.com/blogs/digital-shift-in-middle-east-insurance-market/
Wong;, Guess? Inc. Rebecca. “Robust Cloud Strategy, Implementation & Migration Services.” Systech Solutions Inc., 14 June 2022, https://systechusa.com/cloud/
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