Stephen Browne, Xceedance region head for Australia and New Zealand, recently spoke with Asia Insurance Review regarding emerging trends in the region’s insurance market, the talent crunch, supply chain issues, and much more.
Below is a section of the feature from AIR – you can read the full article (subscription required) here.
The shortage of skilled human resources is another discernible trend emerging. “The pandemic created a shortage of digitally-adept human resources in the insurance industry and impacted supply chains for claims,” said Mr Browne.
“These issues were highlighted by the floods in the first half of 2022 which produced record-breaking claims costs. Border closures meant it was impossible to bring in skilled people from overseas. As insurers emerge from the restricted environment of the pandemic, they are keen to expand but don’t necessarily have the skills availability to do so.”
The service provider says that it is helping insurers overcome such obstacles by providing access to skilled personnel resources using its ‘right-shore model’ and also by helping insurance players to use AI to automate rote tasks, freeing teams to focus on customer interface and improving the customer experience.
The motor insurance market in China is being turned on its head by the rise of new electric vehicles (EVs). Does Mr Browne see the same thing happening in Australia?
“As technology evolves, so too does the insurance market,” he said. “EVs are currently costly to insure, but that will change as they become more prevalent, less expensive to purchase, and the technology becomes better understood. With fewer moving parts than internal combustion engines, they will eventually be less expensive to repair, which will bring insurance premiums down.
“As fewer people own motor vehicles, with car-sharing services and other pay-as-you-use motor vehicle services gaining popularity, insurance will increasingly become tied directly to car manufacturers and rental companies,” said Mr Browne.
“The rise of driverless cars and trend of vehicle manufacturers insuring their own products will change the motor insurance business model. This emerging model could shift the need for traditional consumer motor coverage, moving the industry to focus on commercial motor fleets and coverage for classic or specialty vehicles,” he said.
Read the full article on Asia Insurance Review (subscription required)