Page 27 - Turkinsurance Digital Magazine

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Technology and innovation are key to driving agile growth in the insurance market

utilized much more efficiently in the insurance market, to re-
inforce market’s capacity to encourage financial welfare, and
change its working culture.”

Regulations and changing customer needs are the driv-
ing forces for market growth

Globally, life and property & casualty insurance have expe-
rienced a horizontal growth pattern, while non-life/P&C in-
surance sectors have had better performances in Americas
and Asia-Pacific markets. Report results indicate that on a
global scale, life insurance companies are facing challenges
in terms of growth as they fall short of addressing regulatory
issues and developing new products to meet changing custom-
According to the Insurance Market Outlook 2019 report er needs.
by the international consultancy and audit company Ern-
st&Young, technology and innovation will be the key to driv- Digital transformation does not suffice on its own
ing agile growth in the insurance market this year. The mar-
ket is expected to grow by 3 percent by 2020.
Insurance Outlook 2019 Report reveals strategic actions to
help insurance market overcome these problems, stating that
Ernst & Young has announced the results of Insurance Out- the market should comply with regulatory amendments to en-
look 2019 report which examines the trends dominating the courage growth and digital transformation does not suffice
insurance market. The regional reports covering the US and on its own. According to the report, insurers should extend
Americas, Asia-Pacific and Europe are the result of several their value propositions to develop financial wellness, partner
think tank sessions conducted with industry and functional with InsurTech companies to increase their access, and devel-
professionals, as well as strategists and technologists. Over- op products with an innovative approach.
all, the report found that global insurance sector growth is
expected to remain stagnant. However, the report emphasizes Health and cyber insurance markets growing rapidly in
that insurers must focus on technology and innovation ini-
tiatives to optimize costs, expand distribution channels, en- Asia-Pacific region
hance market accessibility and discover niche segments in lo-
cal markets. Globally, insurance market is expected to grow The report emphasizes that non-life/property & casualty sec-
around 3 percent between 2018 and 2020. tor has grown considerably; but estimations that global eco-
nomic slowdown will continue may pose a negative impact on
Insurers invest in transforming their business models the market in the coming term.

Use of advanced technologies such as artificial intelligence
Damla Harman, Partner and Leader of Financial Sector at (AI) and Internet of Things (IoT), adaptation to rising cus-
EY Turkey, commented on the results of the report and said: tomer expectations, partnering with InsurTech companies for
“Insurance market is going through an exciting transfor- innovation and market access and discovering niche segments
mation process. On a global scale, insurers are investing in that grow rapidly such as health and cyber insurance in the
transforming their business models to make use of growth Asia-Pacific region will present great opportunities for the
opportunities emerging as a result of digitalization. We ex- insurance market in the coming term.
pect digital transformation to make sure that technology is