Stakeholders in the insurance and information technology sector have stressed the need for operators in the insurance sector to embrace digitalisation.
They made the call at a forum organised by the Chartered Insurance Institute of Nigeria(CCIIN) in Lagos.
Speaking on the topic: “Disruptive Technology: The Game Changer for Insurance Business,” Managing Director, Oradian, Mr Moses Sule, noted that data is now the new oil, adding that the digital economy is the new global economy.
He cited example of insurance digital solution such as Trov Powers digital-insurance solutions for innovative businesses in the finance, insurance, mobility and retail sectors, adding that it enables the new way people live, work and move.
He cited examples of digitalisation in the payment system, adding that no data about consumers’ commercial intent limits their ability to create and capture value from customers.
According to him, digital payments carry important data about the consumer’s commercial intent.
“Platforms leverage data around consumer’s commercial intent to match supply and demand.If data is a window into the digital economy, traditional businesses are living in a black hole,” Sule stated.
Also, the Group Chief Technology officer of Custodian Investment Plc,
Esomchi Nwofor, described disruptive technology as any enhanced or completely new technology that replaces and disrupts existing technology.
According to him, it was designed to succeed similar technology already in use. He noted that companies that fail to adapt to disruptive technology would loose market share or die completely.
He cited examples of satellite TV services that gained ground in Nigeria around the late 90s, but was slowly loosing ground to a foreign competitor leveraging disruptive technology (cloud video streaming).
In addition, Nwofor, cited example of China’s first digital only insurance company which sells all its products online.
In 2013, he said the firm acquired 460 million insurance customers (users) and has underwritten 5.8 billion policies.
“Every insurance company sells products online, but the question is, are they profitable? If not then why? In addition, how has digital and mobility influenced how agents and brokers sell insurance? To think about, do you adapt not to lose market share?
“Do you adapt to innovate and challenge the status quo? Do you adapt just because others do and it seems like a nice idea?” he questioned.