Insurance Challenges and Digitalization in 2022

By: Lotfi Al-Sarori

As the whole world was on the precipice of the COVID crisis and its effects, a lot of remarkable impacts were registered in business history as a whole. This impact can also be seen in the insurance industry as the pandemic had its toll on this key sector. Insurance businesses worldwide faced many challenges during the pandemic.

In this article, we focus on three main challenges facing the insurance industry in 2022. The first one has to do with the direct impact of the pandemic itself while the other two relate to how the pandemic created or intensified the need for workforce expansion and better cybersecurity.

Top insurance risks to watch for in 2021

By: Cesilia Faustina

The insurance sector has experienced its fair share of hardships since the rise of the COVID-19 pandemic. According to S&P, reinsurers stated about $12 billion in COVID-19 loses in the first six months of 2020. HSBC had also reported that COVID-19 claims had increased three times during the second quarter of 2020, from $6 billion to $20 billion, many of which came from the property and casualty sector. That said, such losses are to be expected for the insurance sector during a pandemic and (re)insurers are generally prepared for loss events. Overall, the insurance sector has fought resiliently despite the challenges of the pandemic, of course, financial losses will need time to work themselves out and insurance specific efforts will be needed to support this recovery. With many of the financial markets recovering though, we can only expect greater rehabilitation plans for this sector in 2021.

The many handy applications of Web Portals, Part IV: Insurance

By: Lotfi Alsarori

The insurance industry is increasingly taking full advantage of information technologies to enable digital transformation. Insurance providers, whether they are in the life or non-life insurance business lines, are already benefiting from using business systems, such as claims management and policy administration (PAS) systems. Insurance digitalization also entails providing access of certain system functionalities to external stakeholders. Whether they are customers, partners, agents, or brokers, providing access to relevant information and providing extended services can be particularly valuable to the insurance organization. This is where web portals come into play. 

Insurtech: understanding the impacts of insurance automation

By: Lotfi AlSarori

Insurance companies, just like all businesses in the information age, rely heavily on information systems. Whether it is to automate underwriting and claim processing or keep track of their financial transactions, business software brings a lot of benefits to this important financial sector. Business systems are made to facilitate the work of organizations and make them more productive saving them time, cost, and effort. Insurance companies are no exception. 

While Fintech describes the use of technology in the financial services, Insurtech is the intersection of technology in a specific financial services sector, insurance. According to Investopedia: “Insurtech refers to the use of technology innovations designed to squeeze out savings and efficiency from the current insurance industry model.” 

Top trends to watch out for in the reinsurance brokerage industry

By: Cesilia Faustina

Many broker companies are looking for new solutions in trying to fulfil customer demands. Brokers are now looking for a more connected experience amongst brokers, customers and reinsurers. This need is leading to a digital ecosystem amongst the reinsurance brokerage industry where workflow operations can be conducted on a much more productive level.

The reinsurance market is valued at 254.9 billion USD in 2018 and is expected to reach 299.500 billion USD by the end of 2024, according to the Market Study Report. As we can see, the reinsurance industry is most likely not going to slow down and more brokers are looking to enhance their process.

Those that can adapt to the changing times of digitalization will surely come ahead compared to those unwilling to adapt. This is why it is important to talk about some of the digital trends popping up for reinsurance brokers.