Why Innovation Is Key to Growth of Insurance Industry

Innovation is a powerful tool of staying relevant and moving ahead of the rest in the ever evolving consumer market. It can do the same in insurance even as new and well-funded technology-based start-ups pose a real threat to industry giants.

While innovation alone will not guarantee the sustainability of insurers, it holds the largest share of responsibility towards this end. Already we have begun seeing change in that direction with some of the insurance companies in Kenya and South Africa adopting digital changes to serve their clients better.

Thanks to the proliferation of smartphones and other software development tools in Africa, we are seeing the emergence of innovative digital platforms that offer users and potential clients better information and transparency.

Insurance companies that leverage on some of the technological advances will continue to thrive as the rest play catch up. Technology has unearthed opportunities that are not only exciting to consumers but also convenient as far as adoption and servicing go.

Data also informs decision-making across industries. Data technology has in the recent past transformed risk which is the primary element of the insurance business model.

Technology has changed the way data is created, captured, analysed and stored. Insurance firms have many sources from where they can collect data and help create important and personalised products, helping in the management of risk. By 2020, it is estimated that there will be more than 20 billion devices connected to the Internet. Insurance companies that will strategically position themselves for this transformation will reap big in the home, health and car insurance sectors.