UBS Insurtech Shifting Asia report sept. 2017

In late 2017, the Chief Investment Officer of UBS published a report “ UBS insurtech Shifting Asia ” (Original landing page here). I propose here a statement of key points, and what to remember.

Key points to remember about UBS insurtech Shifting Asia

  • Asia is one of the least insurance-covered markets and there are huge catch-up prospects
  • Insurtechs have the opportunity to transform this market more than any other. They could generate, for example, up to $ 300 billion in savings by 2025.
  • Competition is tough on the continent and forces to improve the quality of service as well as to find differentiation criteria
  • Customers are going to be the big winners of the arrival of insurtechs.
  • Incentive prevention actions could lead to significant effects on risky portfolios and thus significant improvements for the benefit of society.

Policy pal – Val Yap Interview

The CEO of Policy Pal gives some insights into insurtech prospects in Asia. 3 points to remember:

  • The Asian market is less developed than the European and therefore offers more opportunities for transformation: for example, the penetration of life insurance in Indonesia is only 2%.
  • Insurtechs provide a hybrid model for end customers. Our platform can allow either a live product sale or an intermediated sale.
  • Digital can make it easier to understand the complexity of insurance products through better customer orientation.

What do insurtechs do?

Vast and ambitious question raised by the report, but the answers are relevant because structured around the value chain:

    • Product distribution, especially via mobile apps
    • Improved pricing and subscription with connected objects
    • Design and development of products around new risks or models for example
    • Improved customer engagement
    • Claims management, thanks to artificial intelligence among others
  • Fraud prevention

The future of auto insurance

Due to its highly standardized nature, the auto insurance contract is the most conducive to a profound transformation.

The report focuses on a case analysis of the transformations to be expected.

UBS insurtech Shifting Asia UBS insurtech Shifting Asia

Vitality – Interview Dr. Shrey Viranna

UBS Assurtech Asia on the Move is back on the model of Vitality, which is not to present. In short, it consists of a behavioral incentive program to reduce risk. Vitality offers a so-called “shared-value” or win-win model between the insurer (which reduces their risk) and the insured (which reduces their premium and improves their health).

The whole challenge of the model lies in the assumption by the insured to provide data so that Vitality can offer relevant incentives. The question of the trust of policyholders is therefore paramount. We have always been vigilant with the use of personal data. We also find that the arrival of connected health objects ( wearables ), policyholders became more aware of this aspect and more demanding too.