The latest wave of technology, data and analytics has created a trend of disruption within the financial sector. The World Economic Forum report the future of financial services noted that the most immediate effects on disruption will be felt in the banking sector; however, the greatest impact of disruption is likely to be felt in the insurance sector.
As a think-tank exploring the role of the financial sector in the developing world, we, like many others, are grappling with how the latest wave of innovation will change the insurance game in the emerging world? Can technology expand outreach and value at lower levels of income? Can it enable voluntary, individual outreach to previously underserved markets?
The ultimate aim being to strengthen household’s ability to manage risk and enabling investment through more productive risk-taking, risk mitigation and mobilization of capital.
Under our partnership with FSDA, we have been exploring the potential of insurtech in the emerging world and found that most of the innovations are yet to transform insurance. However, there are pockets of innovation which offer a lens into what could be.
Under our i2i programme, we are exploring the potential of data and analytics to change the paradigm that most insurers experience at the lower market, namely high costs for low premiums. Data can play a role in customer acquisition and distribution, product design, risk modelling, premium pricing and claims pricing.
However, the potential of technology, data and analytics is yet to be fully realized. There are many potential challenges and pitfalls, and regulatory restrictions in some markets could be inhibiting it.
Cenfri and i2i will be exploring these discussions later this month at the 4th Inclusive Insurance business models for Africa regional learning sessions in Kigali, Rwanda from the 29 to 30th August.
Cenfri will be facilitating and participating in three core sessions, which include:
The event is a combination of high-quality training and plenary sessions aimed at sharing insights on inclusive insurance business models that are making access to low-income market segments in Africa possible.
Around 100 international and regional participants and experts will exchange experiences and discuss a number of key themes and topics on inclusive insurance business models. They include representatives from insurance and reinsurance companies, brokers, distribution channels, international organizations, NGOs, development-aid agencies, policymakers, regulators and supervisors in Africa.
These sessions also complemented the 13th International Microinsurance Conference that took place from 7-9 November 2017, in Peru.
If you would like to learn more about our work or to identify areas for collaboration, please email mia@cenfri.org. In addition to being a technical director at Cenfri, Mia is the theme manager for our risk work under the FSDA and Cenfri partnership.