Asean insurance providers need to embrace IR 4.0

KUALA LUMPUR: Asean insurance providers must embrace the Industry Revolution 4.0 (IR 4.0) and digitalisation in their business operations to increase market penetration in the region, says the Asean Insurance Council (AIC).

Secretary-General Evelina F Pietruschka said this would be in line with the Asean Economic Community Blueprint which was geared towards digital economy and as such, it was important for industry players to keep abreast with global changes.

She said the need to penetrate the middle-low market, especially through microinsurance products could be realised through better distribution channels using digitalisation.

“We never know, sometimes disruptors can change the whole business model in the insurance sector.

“Previously, we distribute products through agents and bank insurance but by using digitalisation, industry players will be able to sell more products to consumers in the lower income bracket in a more efficient and cost effective way,” she told reporters at the 3rd Asean Insurance Summit 2018 yesterday.

Pietruschka said insurance penetration in ASEAN was very low, at a mere 2.5 per cent compared with the global market average of between six and eight per cent.

“Therefore, the AIC will continue to increase market awareness on what needs to be done to face changes, not only in Asean but also in the world,” she added.

Also present was Bank Negara Malaysia Assistant Governor Adnan Zaylani Mohamad Zahid.

The one-day summit themed “The Fourth Industrial Revolution and its Impact on the ASEAN Insurance Industry” was organised by the AIC in support of the Life Insurance Association of Malaysia and the General Insurance Association of Malaysia. — Bernama