A complete digital transformation of the insurance sector is unlikely at present, even though the COVID-19 pandemic has accelerated digitalisation in the sector.
This is because the regulatory framework must first evolve and be completed to foster digital transformation, according to La Marocaine Vie managing director Philippe Vial.
“We cannot speak of a complete digital transformation because there are always constraints on the part of the regulator and that will depend on the country itself as well,” he said at the recent 7th Casablanca Insurance Rendezvous.
The insurance regulator should work with the insurance association or federation, in the case of Morocco, to ensure that there is the capacity to conduct transactions online, “which is currently not the case in Morocco”, Finance News Weekly quoted Mr Vial as having said. “But there is great potential for it to be achieved.”
Digitisation is not enough for inclusion in insurance
While digitisation of the insurance sector can be a boost for financial inclusion, it is not sufficient. Mr Vial said, “We must develop products that are easy and customisable.”
He added, “With the crisis and the pandemic, customers have started looking for usage-based insurance. If they cannot use their vehicle to go to work, for example, they therefore want to pay a premium according to the frequency of use of the vehicle.”
On the same note, Willis Re global CEO James Kent finds that “customers will pay an insurance premium if they find value. This can be achieved through personalised products. Technology will fill the gap. It allows you to drill deeper and create customised products based on customer needs. In addition, the less manual insurance transactions will be, the less cost there will be. Digitisation implies lower prices”. M