eBusiness Weekly
Enacy Mapakame
Zimbabwe’s insurance industry will this year focus on digital transformation to enhance convenience, increase customer base and play catch up with bigger markets in developed countries.
Insurance and Pensions Commission (IPEC) chairperson Ms Lynn Mukonoweshuro said insurance industry should embrace digital technology which helps sector growth and contribute meaningfully to national projects.
According to Ernst and Young Global, digital transformation is capitalising on the power of technology to revisit business models, acquire customers to new channels and create essential user experiences.
Currently Zimbabwe is still lagging behind in digitalisation of the insurance sector, which is tantamount to losing out on the growth opportunities brought by technological innovations.
Ms Mukonoweshuro indicated that local insurers would not enjoy the benefits of the new technological innovations around the globe until they embraced digitalization with haste to catch up with the rest of the world and narrow the gap.
New digital tools and capabilities help streamline new product development, digital experiences and the transformation of key functions — from marketing, distribution, underwriting and claims to finance and accounting.
“In developed markets, virtually all insurers now provide online services for purchase of insurance and pension products
“In addition to the traditional service methods like telephones, walk in, mail and agents, they also provide completely online customer service platforms allowing customers to access all services for basic contract amendments and renewals products, we must do that in 2019 as Zimbabwean insurance and pension industry,” she said.
At a global scale, more than 80 percent of customers are willing to use digital and remote contact channels (including web chat, email, mobile apps, video or phone) in place of interacting with insurers via agents or brokers, according to EY Global.
This is premised on the convenience it brings at a time more services are becoming accessible online. These have also been identified as one of the solutions to insurance fraud caused by unscrupulous agents selling fake insurance products.
The IPEC chairperson called on the sector to put more attention into digital insurance services to enhance customer convenience in a fast paced economy.
“Don’t make us queue for insurance too, so that we have ample time to do other things. Digital transformation must be one of your top priorities as an insurance player, regardless of the state of the economy,” she said.
World over, the inevitable advancement of digital technologies has placed the traditionally slow-moving insurance sector under greater pressure and insurers need to embrace the changes and enjoy a competitive advantage.
