IconAccounting & Tax
IconAppraisers & Valuers
IconArbitration Services
IconAssessors & Loss Adjusters
IconAssist and Lifestyle Benefits
IconAssociations & Institutes
IconBBBEE Consulting and Verification Agencies
IconBroker Acquisition Financing
IconBrokers for Brokers
IconBusiness Process Management
IconBusiness Process Outsourcing
IconCall Centre Outsourcing & Sales
IconCompany Secretarial Services
IconConsumer Protection
IconCorporate Governance
IconCredit Bureaus
IconDebit Order Collection Facilities
IconDefensive Driver Training
IconEducation and Training
IconEmergency Medical Rescue
IconFire, Storm, Flood Damage Specialists
IconForensic Investigation Services
IconHuman Resources
IconIndustrial Cleaners
IconInformation Technology and Software Partners
IconInsurance Companies
IconLightning Damage & Surge Protection Specialists
IconNiche Insurance Products
IconOutbound Sales
IconOutsourcing Companies
IconPolicy Administration
IconPremium Financing
IconPublic Loss Adjustors
IconRating Agencies
IconReference Books & Material
IconRegulatory Authorities
IconRisk Finance
IconRisk Management
IconRisk Surveyors
IconSalvage Operators
IconSpecialized Claims Investigations & Assessing
IconSurveys and Research
IconTraining Courses & Workshops
IconUnderwriting Managers
IconVehicle Accident Management
IconVehicle and Household Risk Inspection Services
IconVehicle Tracking
IconWellness Programs
IconWholesale Brokers
  Subscribe To »

Insurance of the future






Yusuf Bodiat, Acting Chief Financial Officer
Lion of Africa Insurance Company Ltd.
We are living in an extremely fast paced world, where a large component of success is driven by technology. New apps are launched every minute and software is outdated very soon after being released. Millennials (also known as Generation Y) are now entering their prime spending years, and since they are one of the largest generations in history, they command the type of items which are produced, at the pace that they want it to be produced and enhanced.
The world as we know it is changing. Many urban households in first-world countries have more devices than people living in it. Pre-schoolers are able to fly drones with precision. Most people are able to type faster than they can talk. A smart-home is no longer a term from a sci-fi movie. Driverless vehicles will be the norm in the near future. There may also be a time (very soon) where the use of cryptocurrencies over-takes the use of traditional payment methods.
So how will all these technological advances impact on the short-term insurance industry? It may be a good idea to understand where we have come from to better understand where we may be going.
Insurance is a form of risk management and a means of protection from financial loss, often seen as a grudge purchase. Although the industry has evolved significantly over the years, the basic concept of insurance still remains the same: the insurer receives a premium from the insured in exchange for covering the insured for future losses.
From a technological point of view, a lot of advancement has occurred in the last decade. Not only are we able to apply for insurance and register claims through mobile apps, the turnaround time on all processing has significantly improved. In addition, the automation of such processes allows policyholders to deal with their insurance needs any time of the day (24/7), since the technology is not restricted to business hours. The use of technology has also allowed for the hard-paper trail to be reduced (in some instances eliminated completely), such that a policy can be confirmed telephonically with no physical signature required.
The basic concept of insurance should remain; the insurer receives a premium from the insured in exchange for covering the insured for future losses.
Looking into the future, from a premium payment perspective, the industry may need to be able to accept premiums in the form of cryptocurrencies. As the industry is highly regulated and until cryptocurrencies are regulated in any way, how will industry react to this potential need by policyholders? What types of system security is required to protect client data? How do we ensure that no exchange laws are impacted and do we now venture into the sensitive topic of cross border transactions?
The other side of the transaction, and possibly the more complex part, is dealing with the items which are being insured.
Take a driverless vehicle as an example. Traditional insurance is clear that a vehicle is classified as motor insurance, regardless of it being commercial or personal lines business. However, if a driverless vehicle were to be insured, is it classified within the motor or engineering class? One could argue that the item being insured is not a vehicle but rather electronic equipment, which then falls within an engineering policy. Does the industry have the necessary skills to underwrite this risk? Is there a higher risk of fire as there are more gadgets in the vehicle which are prone to ignite? Is there an additional risk of theft through the vehicle’s server being hacked and the vehicle being remotely driven away? If the technology were to malfunction, what is the quantum of potential liability claims in the event of an accident?
The industry will have to develop the necessary skills to underwrite these risks.
These are just two examples of change that is inevitable. A significant amount of time, money and resources will be required to enhance and continuously improve systems and technology in general.
The most important question is, is the industry ready for this change?
Charles Darwin is quoted to have said, “It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is most adaptable to change.”  
Source: High Pitch Media
« Back to previous page Print this page » |

Breaking News »

The Implications Of Overloaded Vehicles On Your Insurance Policy

Overloading – it’s a common occurrence on our roads. If we don’t drive past an overloaded bus, taxi or truck, then we read about another horrific accident caused by one. Hundreds of passengers ...
Read More »


Supporting Brokers In Optimising The Claims Experience Of Their Clients.

TANSA is a team of dedicated professional Attorneys, Forensic accountants, Disaster Claims Experts and Insurance Specialists focused on Insurance Claims & Dispute Resolution. Their mission is to support ...
Read More »


Redefining the role of the broker in a digital age

Technology, data, cultural and behavioural change of the consumer is transforming the role of the broker – and the importance of advice – in South Africa’s intermediary insurance market. Soul ...
Read More »


Premium collections now available through Brolink

Brolink has entered the premium collection market. Says the company’s CEO, Howard John, “After a very successful pilot programme, and working through a number of legislative issues that ...
Read More »


More News »


Healthcare »


Investment »


Life »


Retirement »


From The Glossary »


Small Company Funds:

Small company funds seek maximum capital appreciation by investing in both established smaller companies and emerging companies. New investment by these funds is restricted to small and mid-cap shares and at least 75 percent of the fund must at all times be invested in shares which fall outside the top 40 JSE listed companies by market capitalisation. Due to their nature and focus these funds may be more volatile than those that are diversified across ...
More Definitions »






Contact IG


Media Pack


RSS Feeds

By using this website you agree to the Terms of Use.
Copyright © Insurance Gateway (Pty) Ltd 2004 - 2021. All Rights Reserved.