How do you perceive the General insurance sector today? What are the main growth avenues, in your assessment?
Today, consumer’s insurance demands and buying patterns are based on a considerable understanding of the products and services on offer. This led to significant competition between players in the industry in terms of new product development, distribution and accessibility, as well as ensuring star-class service levels in corporate and retail segments.
Selecting the right risks, segmenting the business approach, offering differentiated service levels and understanding customer needs have been the key drivers of growth, alongside the roll-out of tech initiatives to deliver solutions which prioritizes customers. In terms of personal insurance, Motor and Health categories continue to lead the growth drivers with greater demands arising in the digital space.
Is there further potential in the General Insurance market segments?
Yes, we believe there are several opportunities for the General Insurance market to grow and reinvigorate at a greater scale while moving away from the current impediments due to the pandemic as well as the slowed down economic activities. Following the unprecedented effects of the pandemic, when both the economy and businesses start to recover, there will be opportunities that will lend itself for this business to grow. We have already started to see the positive impact of digitization via reduced distribution costs. We are confident that a lower cost structure will translate to a lower price for customers, resulting in greater demand.
How important is General Insurance in your estimation?
A healthy General Insurance industry is vital for any country’s overall economic growth due to the diverse benefits it brings and the crucial role it plays in fostering economic revival. It often forms the backbone of several industries as well as individuals, throughout their life cycle, in helping them recover from unforeseen disruptions while protecting investments in infrastructure, corporate assets and households. In essence, it builds resilience in the face of disaster.
What are the key strategies to drive the General Insurance sector in this country going forward?
Over the next few decades, we foresee significant shifts to this sector, across almost all business verticals, Therefore, it is important that we understand this and embrace a business model that considers these future changes.
The General Insurance sector would face fundamental changes over the next few decades in most levers in the business as the industry adapts itself to market realities and business models of the future. A greater focus on technical skill development, consumer protection, corporate governance, architectural redesigning of products and retirement of traditional legacy products, the introduction of more data driven modernized risk assessment tools and the setting up of digitally enabled convenient product specific distribution models would largely contribute to the development of the sector.