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How insurance is being disrupted

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Many industries, including the insurance sector, are seeing how disruptive technology is changing the way they do business – often forcing companies to re-think their strategies, writes JAQUELINE VAN EEDEN, Insurance Head at Wipro South Africa.

Disruption, once a word used to describe bad behaviour, has now been turned into a revolutionary means of changing the way business is conducted by technology. Insurance is not exempt from this disruption. We are seeing a very clear shift away from traditional means of insurance towards the newer, more evolved methods necessary for maintaining pace in a fast changing, always-on and connected world.

There are typically four main aspects of insurance: product design, pricing and underwriting, distribution and admin, and claims management. This model has been the same for decades and, despite of the increase in product complexity, the insurance business is essentially relying on policy premium income and asset management to function.

However, the rise of disruptive technologies and changed customer mind set is changing this model, and insurance companies are forced to change from product-centric model to customer-centric approach.

Insurers are moving towards customised, usage-based, real-time coverage models and moving away from risk-based underwriting approach to risk management approach. From the beginning, insurance companies have captured lot of data and advancements in big data and analytics, helping insurers in right risk selection, enabling more accuracy than ever before. Legacy interaction methods and distribution channels using call centres and one-on-one visits are being replaced, and  anywhere anytime response to customers is taking top priority. Virtual technology is providing easier and instantaneous ways for clients and insurers to obtain and update information, even enabling seamless and accurate billing via mobile applications.

Emerging digital trends in insurance

There are several trends currently disrupting the insurance industry across the globe, many of which are either technology related or technology driven, which are enabling insurance companies to remain relevant and competitive. African insurance companies are following suit and embracing many of these global trends in the face of a challenging and complex market environment.

Some of the key trends that have been identified are an increased use of Internet of Things (IoT) by insurance companies, the use of Big Data to improve claims processing, an increasing demand on cyber insurance, the emergence of Peer-to-Peer insurance, and a growing focus on mobile applications for interaction between insurers and their customers.

Today’s customer uses the Internet to source quotes and research insurance companies to check for the best deals, yet research shows that most insurance purchases are still happening telephonically or through in-person interaction. Insurers are coming around to the fact that customers prefer online interaction, and are realising the need to adapt their systems accordingly. We will be seeing the progressive simplification of legacy systems to remove the barriers that hinder them from offering a consistent and seamless customer experience.

As the trend for connected and smart devices continues to grow, IoT is fast becoming a transformational driver in insurance industry. Several auto insurers have implemented new models based on vehicle telematics.  The possible applications of connected devices across the industry are extensive and have the potential to revolutionize claims processing, product pricing and fraud detection. Auto insurance industry still worried about the future of insurance connected cars and driverless cars as the manufacturing advancements are going to reduce the risk and there by premiums for insurers. Industry predicts that Auto insurance premiums will go down significantly in the next 10 years due to customer behaviour changes and manufacturing advancements in the industry.

Virtual adoption across the insurance industry has also been vast, and many insurers are actively using or implementing virtual computing for operational flexibility, function standardisation, cost savings, scalability and business agility. Small to mid-market insurers have been seen as early adopters of virtual computing services, which is enabling the ability to deliver faster claims, policy and billing services.

Insurers are facing an all-time low retention rate, backed by growing customer demand and rising concerns about cyber-crime. By not capturing and extracting data accurately, insurers are not able to assess their business positioning and the associated business risks fully, including security breaches. Insurers are being forced to make operational changes which will enable them to make better use of their data, for the purpose of retaining business and staying ahead.

Traditionally insurance is sold than bought. With advancement in technology customers have multiple options and they are demanding changes in the behaviour of insurers to have multiple touch points now compared to the past. Insurers are migrating and upgrading their legacy systems, by automating and digitising core systems. Insurers are seeing the benefits of improved efficiency and customer interaction at multiple touch points. Legacy system transformation has been slow in Africa due to perceived high costs and lengthy implementation timelines. However, many are quickly realising that the longer they wait, the more customers they risk losing, adding to their lag behind competitors.

Insurance companies are embracing these trends and looking at more innovative ways they can attract and maintain customer retention. They are remaining up to date and very interactive with what is happening, even exploring radical game changing technology such as the blockchain.

Disruptive technology is creating new insurance services

With the advent of technologies like IoT, we are seeing an emergence of new services. Connected home technologies are enabling people to stay in touch with things like their home security systems, which is reducing risk for insurers who offer home insurance. Wearable technology is enabling health insurers to keep real-time tabs on the health and wellbeing of their customers, again mitigating risk.

We are seeing the biggest impact in the use of Big Data, though. Insurers are discovering the multiple benefits that the wealth of information available from sources such as social media is delivering. Using this information, they are able to tailor their products based on customer preferences and even offer customised rewards programs, increasing sales and customer retention significantly. It is also enabling easier and more streamlined claims processing, as information is recorded, and centrally stored and accessed.

Of course, the mobile trend, particularly in Africa, is making possible the use of apps, not only to smooth insurer and customer interaction, but also to track things like customer fitness, health and even wealth status. Applications are opening up a world of possibility for insurers everywhere.

Insurance in Africa vs the World

In South Africa, lot of importance is placed on things like life insurance, private medical aid car insurance. The rest of Africa, however, sees insurance as less necessary. This means that insurers who operate in Africa need to be more agile, identifying ways in which they can appeal to the African market and delivering them with speed.

Quick, Easy, Instant, Flexible Insurance is very attractive to the African market. An example of such an initiative is currently being investigated by a South African Insurer who is moving into the Nigerian market. They identified a need for taxi drivers to have medical and insurance cover specifically for while they are in transit. Taxi drivers will be able to purchase insurance making use of USSID or a smart phone application enabling cover only for the time that they are travelling from collection point to destination – an attractive and cost effective proposition for the transport business

This is just one of the many ways in which insurance is changing and being impacted by technology. Insurers, typically entrenched in tradition thanks to its association with stability and reliability, do need to realise that the market has changed. It’s time to embrace technology and disrupt the way insurance works for longevity.

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As selfie cameras rise, so must selfie etiquette

Selfies were once a sign of narcissism or self-obsession. Now they are the new normal, writes ARTHUR GOLDSTUCK.

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You can blame Oxford Dictionaries for making the “selfie” respectable. After all, being named Word of the Year, as it was in 2013, does tend to soften some of the self-consciousness in this most self-conscious of actions.

Once seen as a symbol of narcissism and self-obsession, it is now the new normal, to the extent that most smartphones are sold on the basis of the front camera. Or, as that feature is now almost universally named by manufacturers, the “selfie camera”.

I was one of the hold-outs, having a near-allergy to the selfie. I still resist, but succumb more often than I would like. The reason for continued resistance is that it remains a big leap from the word becoming respectable to the action itself shedding its narcissistic image. 

For most, it’s already happened, and for that you can blame Ellen DeGeneres. She  choreographed the most famous group selfie yet at the 2014 Oscars, when she roped a bunch of actors into a group selfie, using the then-new Samsung Galaxy S5 smartphone. Her tweet of the photo became what was then the most retweeted posting ever on Twitter, and was estimated to have been worth a million dollars in marketing value to Samsung.

Ironically, it was Samsung’s up-and-coming challenger, Huawei, that came up with a new word for this type of selfie: the “groufie”. Thanks to an 8 Megapixel front camera on the new Huawei Ascend P7 camera that year which took the highest quality selfies – and groufies – possible on a smartphone at the time.

It didn’t end there, and selfies and groufies have morphed into variations like selfscapes (selfie in a landscape), skyfies (selfies from the air, using remote controlled devices) and jerkies (selfies to make an idiot out of yourself). I invented all of those on the fly, so it’s easy to imagine a new word emerging for every type of selfie.

Continue reading about selfie improvements through the years.

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Mickey’s 90th for SA

Disney Africa announced the local launch of the Mickey the True Original campaign, joining the global festivities honouring 9 decades of Mickey Mouse, his heritage, personality and status as a pop-culture icon.

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As 18 November 2018 marks 90 years since his first appearance in Steamboat Willie in November 1928, a series of world-wide celebrations will be taking place this year and South Africa is no different.

The campaign will come to life with engaging content and events that embrace Mickey’s impact on the past, present and future. The local festivities kick off in earnest this month, leading up to Mickey’s 90th anniversary on 18 November 2018 and beyond:

  • An exclusive local design project where ten highly talented South African artists will apply their own inspiration and artistic interpretation on 6-foot Mickey Mouse statues.
  • Once revealed to the public, the statues will form part of the Mickey the True Original South African Exhibition, inspired by Mickey’s status as a ‘true original’ and his global impact on popular culture. The exhibition will travel to 3 cities and delight fans and families alike as they journey with Mickey over the years. Featuring 4 sections highlighting Mickey’s innovation, his evolution, influence on fashion and also pop culture, the exhibition is in collaboration with Samsung and Edgars, and will visit:

o   Sandton City, Centre Court: 28 September – 14 October

o   Gateway Theatre of Shopping, Expo Explore Court: 19 October – 11 November

o   Canal Walk Shopping Centre. Centre Court: 16 November – 26 November

  • Samsung continues their collaboration with Disney as they honour Mickey’s 90th anniversary nationally at all Samsung and Edgars Stores. Entitled Unlocking the Imagination, fans are encouraged to visit these stores, take a selfie with a giant Mickey plush toy using their Samsung Galaxy Note9 and stand a chance to win not only a giant Mickey plush, but also an international family trip. Visit www.Samsung.com for more information
  • Mickey’s 90th Spectacular, a two-hour prime-time special, will be screened on M-Net 101 later this year. The elegant affair will feature star-studded musical performances, moving tributes and never-before-seen short films. Superstars from music, film and television will join the birthday fun for the internationally beloved character.
  • In addition, look out for special programming on Mickey’s birthday (18 November) across Disney Channel (DStv, Channel 303), Disney XD (DStv, Channel 304) and Disney Junior (DStv, Channel 309).
  • In retailers, Edgars will be stocking a complete collection of trendy fashion, accessories and footwear for the whole family, inspired entirely by Mickey Mouse.
  • Mickey will be the central theme of an in-store campaign nationwide this November and December, with brand new products, apparel, toys, as well as titles from Disney Publishing Worldwide, including books, arts & crafts and comics
  • Discovery Vitality and Disney are celebrating healthy, happy families this festive season by offering helpful and exciting tips and tricks on how to eat nutritious, yet delicious, foods, all inspired by Mickey. There’s also a trip to Disneyland Paris up for grabs. Log on to www.discovery.co.za/vitality for information.
  • And much more – check the press for updates

“Binding generations together more than any other animated character, Mickey Mouse is the “True Original” who reminds people of all ages of the benefits of laughter, optimism and hope,” says Christine Service, Senior Vice President and Country Manager of The Walt Disney Company Africa. “With his universal appeal and ability to emotionally connect with generations all over the world, no other character quite occupies a similar space in the hearts and minds of a global fan base and we are thrilled to be sharing these local festivities.”

Mickey’s birthday is celebrated in honour of the release of his first theatrical film, Steamboat Willie, on 18th November 1928, at the Colony Theatre in New York City. Since then, he has starred in more than 100 cartoons and can currently be seen on Disney Channel (DStv, Channel 303) in the Mickey Mouse cartoon series and on Disney Junior (DStv, Channel 309) in Mickey and the Roadster Racers.

South African fans are encouraged to share their Mickey Mouse moments on social media using the hashtag#Mickey90Africa.

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