Just before his participation in GAIF conference, Mr. Andreas Pollmann, Client Executive for the MENA Region at Munich Re, answered Al Morakeb Al Ta’mini’s questions in regards of the new technology trends and the ability of the local markets to coop with their impact on the insurance sector. He also discussed the advantages of the Digital Transformation and its disadvantages, and the changes that it introduced to the fundamentals, leaders, actions and results of the industry.
* Where do you see the Arab insurance industry from the digital transformation achieved at the global level?
– Very well positioned. Like in many regions and markets there are some players already advanced in the digital transformation and other didn’t even think about it yet. For all companies, the young average age of the populations and their affinity to digital means of communication and trade offer a great potential.
* What changes will the digital transformation in the insurance sector introduce to the fundamentals, leaders, actions and results of the industry?
– Digital transformation will have an impact on all organizational and transactional levels. Internally, insurance companies will have to change processes and they have to be aware of the changes in relationship with customers, reinsurers as well as brokers and supervisory bodies.
* Do you think that the Arab consumer is able to interact and deal positively with the digital shifts in the insurance industry?
– Definitely yes. Look alone on the widespread use of devices like smartphones, that allow manifold contacts between insured and insurer, e.g. for marketing and contracting, information and loss reporting. For the Arab insurance industry this will definitely mean potential to reach out to new clientele. New avenues will open up to distribute financial services and insurance products and render an unseen level of service and convenience to customers.
* Some new and complex types of insurance that keep up with the latest technological development (Cyber, auto-driven vehicles, robots, smart phones…) are currently introduced to the markets…
How does the Arab insurance industry react to such products?
– These new types of insurance with their new technologies pose new challenges and opportunities for the insurance industry. Not only in the Arab World. Companies will have to react on these developments and find their answers to the transformation trend. International Reinsurers are currently advanced in finding global answers to these technological challenges. The regional and domestic implementation of new technology solutions will be with the responsibility of local insurers.
* Numerous digital insurance companies are emerging to promote insurance policies in all areas of businesses…
What are the pros and cons of such phenomenon?
– This development will certainly lead to an increasing pressure on traditional insurance companies to undergo also a digital transformation or create a new digital arm. The benefits for the consumers and the companies out of digital business models are massive since they lead to customer dialogue and proximity, efficiency and economic benefits that will become the new norm. Customers who are used to their digital devices and easy, seamless, instant and intuitive services will demand the same from their insurer in the future.
