Zim insurers digital transformation slow : Regulator
HARARE, Insurance and Pension Commission (Ipec) says the country’s insurance industry will not be able to able to enjoy the benefit of transformational technologies until it begins to offer a true digital basic service to its customers.
While the local market is moving in that direction although on a slow pace with most of the big players only offering partial digital processes, Ipec board chairperson Lynn Mukonoweshuro told an Insurance and Pensions Journalism Mentorship Programme’s Graduation Ceremony last week that insurers must accelerate their pace of adoption in order to remain relevant and capture the next generation.
“Until we can offer a true digital basic service to our customer, we will not be able to enjoy the benefit of these transformational technologies and the gap will continue to widen.
In order to remain relevant and capture the next generation, local insurers must accelerate their pace of adoption. If it is not already then it must be one of your top strategic priorities regardless of the state of the economy. Our local market is moving in that direction but far too slowly. Most of the big players are only offering partial digital processes.
This may be because of the cost of replacing some of the legacy back end systems that do not lend themselves to real time online processes,” she said.
She added that generally, insurers particularly the large ones had rested and their dominance and brand to retain their market share.
“This is no longer the case as I am sure you have all observed and felt the brunt of the disruption that some of the more digitally savvy players in the industry are creating by exploiting digital to capture the market” she said.
Mukonoweshuro said in the developed markets, virtually all insurers now provide a complete online process for the quotes and purchase process.
“In addition to their traditional service models (walk in, agents and telephone) they also provide a completely online customer service platform allowing customers to self-service for basic contract amendments and renewals. By so doing, they are putting the customers convenience first and giving them the choice as to where and how to access their products and services,” she said.
Meanwhile she urged insurance companies to participate in programmes that enhance circulation insurance information through the media saying it would be an investment whose return is enhanced financial inclusion through financial education about insurance and pension matters and increased business of insurance companies.
She added that Journalists that are knowledgeable about the sector will be able to disseminate the much needed information to enhance financial literacy on insurance and pension issues, hence contributing the national goals on financial inclusion.
She said, it will also assist in achieving the transnational stabilisation programme derivable as the media partners will play a crucial role in promoting confidence in the sector and enhancing consumer knowledge.
“As you may be aware, the Transitional Stabilisation Programme set a target of increasing insurance penetration ratio from the current 5% to 20% by the year 2020. In addition, it also sets the following targets relating to insurance and pensions:-a) Broadening insurance support to agriculture through facilitating and development of insurance products that target agriculture; b) Reviewing of some of the stringent insurance industry licensing requirements; and c) Savings mobilisation for key national projects,” she said.
