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4 Key Technologies for Capturing Insurance Growth Markets

EY has identified 17 rapid-growth markets besides the BRIC countries, and the technologies insurers can use to successfully sell product there.

Mexico, Thailand, Colombia and Indonesia are among 17 emerging "rapid growth markets" (RGMs) that challenge the growing BRIC countries (Brazil, Russia, India, China) in opportunities for insurance growth, according to EY's recent "Waves of Change: The shifting insurance landscape in rapid growth markets" report.

While China will continue to play an dominant role in driving premium growth in international markets, new emerging markets offer an attractive combination of growth potential and risk profile that insurers can take advantage of, the report says.

"New waves of market liberalization and rapid consumer adoption of new technologies are opening additional markets such as Mexico and Thailand to non-domestic firms," says Shaun Crawford, EY's global insurance leader, in a statement. "Insurers will need to model the risks across all the geographies to clearly evaluate the drivers for growth and pick their targets carefully."

[More from EY: Insurers to 'Double Down' on Tech in 2014]

Dave Hollander, global insurance advisory leader at EY, wrote in an e-mail to Insurance & Technology that there are four key technology areas that insurers can leverage to make it easier to enter and grow in these markets:

  • Speed and consistency of common operating platforms (e.g., sales, underwriting, policy production, etc) across RGMs will improve ability to respond to regulatory demands while keeping operating expenses low

  • SaaS and other creative deployment mechanisms must be considered as infrastructure is time consuming and potentially quite costly in a new market scenario

  • Digital sales and service delivery options must be part of the core strategy for attracting and servicing customers in a mobile world

  • Effective and proactive use of analytics to look for early trends in persistency, cross selling, fraud and other risk factors is essential

Nathan Golia is senior editor of Insurance & Technology. He joined the publication in 2010 as associate editor and covers all aspects of the nexus between insurance and information technology, including mobility, distribution, core systems, customer interaction, and risk ... View Full Bio

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KBurger
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KBurger,
User Rank: Author
1/31/2014 | 7:11:33 PM
re: 4 Key Technologies for Capturing Insurance Growth Markets
Thanks Marc. One thing for sure -- management will not accept IT-related impediments to growth (not that it was ever acceptable, but especially not now) or any other business imperative (compliance, etc.). So there's almost no choice but to adopt these new infrastructure & computing models.
MarcAnthony
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MarcAnthony,
User Rank: Apprentice
1/31/2014 | 6:23:38 PM
re: 4 Key Technologies for Capturing Insurance Growth Markets
Kathy,
Spot on! SaaS/Cloud, "creative deployment" is foundational to common operating platforms. I would offer that not only are cost of expansion high/prohibitive, the flexibility to changing/new regulations in the US and Globally is required to respond quickly to market opportunities and new product development.
KBurger
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KBurger,
User Rank: Author
1/27/2014 | 9:35:25 PM
re: 4 Key Technologies for Capturing Insurance Growth Markets
I think Dave Hollander's 2nd point, regarding "SaaS and other creative deployment mechanisms" is the key to market expansion; in fact, that is kind of the premise/business case for pursuing these models -- being able to quickly respond to market opportunities. Increasingly, there can be no "speed and consistence of common operating platforms" (his first point) without this kind of virtualized or hosted environment. Otherwise, the costs of expansion are prohibitive.
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