ITIC MEA 2024 | Insurtech partnerships
Jonathan Cooper and Hassen Bennour examine how insurance companies can make the most out of their partnerships with tech companies
The ITIJ team have been reporting live from ITIC MEA in Cairo this week (April 2024) sharing the discussions that took place at the conference. Read all the reports here.
Hassen Bennour, CEO Asia, Pacific and Middle East, Europ Assistance, started his session by talking about the latest travel trends and then where he thinks the travel ecosystem is heading.
He said that, with recent tourism market recovery and growth, tourism expenditure has increased, and air traffic is recovering rapidly, with is a strong demand for leisure and business travel. He added that consumer travel spending has increased, and that there is a real demand for premium cabin classes. Bennour stated that Asia and MEA are leading this growth.
He went on to say that there has been a big shift in traveller preferences, and that now they are very environmentally aware, which has driven new forms of tourism. Bleisure travel (business plus leisure travel) is also growing rapidly.
He said that tech-enabled personalisation, artificial intelligence (AI) and generative artificial intelligence (GenAI) are disrupting the role of technology and that there is a continuing shift in distribution.
Bennour went on to talk about GenAI and travel insurance, and used generic cases of how Europ Assistance have implemented these practically. He said they use:
- 24/7 customer service via AI chatbots
- Automated claims processing
- Language and communication enhancements
- Customised policy generation
- Real-time policy adjustments
- Dynamic pricing models
- Sustainable travel products.
He then talked about insurtech partnerships, distribution reach accelerators, and customer experience facilitators.
He said the travel insurance value chain includes:
- Product development
- Core insurance
- Online distribution
- Payment services
- Customer support
- Claims management
- Medical assistance.
He went on to say that the insurtech players’ preferred space is between online distribution and claims management. Bennour then said there are opportunities for business from:
- Increased efficiency and automation
- Enhanced customer experience (digital solutions)
- Access to innovative technologies (AI, data analytics, blockchain)
- Improved risk assessment and underwriting capabilities
- Efficiency and scalability.
… and challenges, such as:
- Integration with legacy systems and processes
- Data security and privacy concerns
- Dependence on third-party technology providers
- Potential for disruptions in service
- Regulatory compliance and legal implications.
Jonathan Cooper, Managing Director and Co-Founder, WIS, started his talk by saying that insurtechs are enablers, and that they:
- Allow insurers fast and efficient embedded insurance
- Deliver digital customer experiences – easy to buy, relevant and affordable products, increasing penetration
- Offer flexibility – may be end-to-end or part of the value chain
- Enable digital claims experience and flexible payment processes
- Offer process optimisation and cost savings.
He said insurtechs help insurers exploit evolving distribution, and went on to say that it’s important to make the most of your partnership with your insurtech. He said both sides have shared objectives and that it’s important to avoid silos.
He went on to say that it’s also important to maximise synergy and to leverage insurtech partnerships for insurance industry growth.
Cooper then spoke about enhancing claims experience and automation, and that tech providers can offer:
- Digital First Notice of Loss (FNOL) – immediate reporting and quicker response time
- Automated claims management – minimise errors and enable fraud detection
- Automated payout – leverage AI to analyse claims in real time with threshold-based payouts
- Customer centric solutions – seamless communication and self-service options
- Data driven insights – predictive analytics anticipating future claims trends and proactive risk management.
To finish the session, Mandy Langfield asked what the most important aspects are for insurer/insurtech partnerships. Cooper said trust and transparency are so important. Bennour agreed and added that from his point of view successful partnerships rely on people understanding insurance, and that having long-term relationships are important – they know the history of each other’s business and they can overcome challenges when they arise.