More opportunities now available for the insurance sector
Unique opportunities exist in the insurance industry for enterprises to thrive, despite the ongoing COVID- 19 pandemic.
Botswana Insurance Holdings Limited ( BIHL), the country’s leading insurance group, this week highlighted to insurance industry players in a webinar meeting that prospects still exist, driven mostly by digitisation and new products. Deloitte Director and Actuary, Giles Waugh making a presentation under the banner: ‘ Opportunities for African Insurance and efforts to increase penetration’ highlighted several opportunities for insurance to thrive, amid COVID- 19 pandemic.
He implored insurance companies to embrace enhanced efficiency through accelerated digitization, reduce operational expense with remote working, digitize sales and clinch to remote onboard customers. “COVID- 19 has caused a shift to increased digitisation and remote work, which lowers operational costs, especially where insurers were highly reliant on face to face customer engagement,” said Waugh adding that moving to a system where identities are established and verified digitally and remotely can reduce costs for insurers and decrease customer drop off.
In addition, Waugh said insurance companies should consider new product opportunities and innovation around large risks like pandemics and climate. “COVID- 19 has highlighted the negative impact of large systematic risks on governments, businesses and individuals and the current gap in insurance products,” Waugh said. He emphasized that insurance companies need to put more efforts on customer education, access, ease, insight, communication and delight.
Commenting on opportunities in the insurance space BIHL Group CEO, Catherine Lesetedi said Africa’s insurance industry remains largely underdeveloped, with insurance penetration in the continental region deemed low by global standards. “Technological advances have now moved to the front of insurers’ minds in efforts to revise this. However, there is a need for insurers to implement various strategies and efforts to truly unearth the untapped potential and emerging opportunities for growth in the African market,” said Lesetedi.
Meanwhile, Waugh’s optimism on vast opportunities on Africa’s insurance space is hinged on the continent being the second largest continent and currently home to four of the 18 largest countries. In addition, GDP growth in Africa is increasingly high, insurance penetration is low, and government support remains crucial.