My Key Takeaways from Two Recent Digital Insurance Conferences in Hong Kong and Coffee Outings

In the past two days, Hong Kong played host to not one but two digital insurance conferences, providing a unique opportunity for insurance executives, CXOs, and consultants from Strategy, IT, and Leadership Advisories to connect and discuss the future of the industry. These are my key insights on some thought-provoking discussions from the panels and presentations.?

Embracing Transformation and Fostering an Innovation Culture

"Mindset" is still the biggest hurdle to overcome the required change!

A bold statement set the tone for the first panel. Insurers have yet to deliver their digital transformation promises entirely. The consensus among speakers was that the primary obstacle to transformation is not technology but rather the mindset that resists change and hinders absolute commitment to the digital journey.

Perfection is the enemy of good.

Rohit Nambiar?from Tune Protect emphasized the value of accepting failure as part of the new management culture. When agility is required, speed comes with risks. My mind reminded me of the saying, "Perfection is the enemy of good." Rohit addressed that culture change comes from the top. Leaders need to embrace "walk the talk" and prioritize customer obsession. Transformational leadership is all about getting the best out of everyone, not just yourself.

Several executives, including Rohit and I, discussed in coffee outings further the need to change and shift away from traditional financial KPIs as a necessity. When building customer-centricity and growth companies, the board has to embrace other metrics such as customer satisfaction, retention, and new acquisition of target customer groups. This approach requires a willingness to take risks and a reevaluation of ROI from a long-term perspective.

Meeting the Needs of a New Generation

As Baby Boomers and Gen Xs make way for digital-native Millennials and Gen Zs, insurers must adapt to the changing expectations of their customer base. The younger generation values seamless service offerings, convenient transactions, and immediate gratification. They are more likely to conduct their own research and prefer not to engage with agents or brokers. I still need someone to speak with me, but the new generation will not, and this will create massive issues moving forward.

To cater to these evolving preferences, insurers must strike a balance between innovation and the pressure to provide ROI in a challenging market. This balancing act must consider geopolitical tensions, regulatory pressures, inflation, pandemics, generational shifts, and climate change.

Insurers have data but must embrace much more data from the outside!

Aneesh Chaudhry?from Sunlife shared how traditionally, Insurers need to look out for data outside their organizations and share intriguing examples of how data, when used intelligently, can unlock a great Customer Experience. How you hold your mobile or the way you type can be for instance, used as an identity check instead of a password.?

Micro-Insurance and the Volume-to-Value Dilemma

Despite the industry's progress in digital transformation, micro-insurance has yet to find a solution to the volume-to-value dilemma. No one yet, even the most successful players, has reached this milestone.

?

The Impact of Generative AI on Talent

The conference also explored the potential risks and opportunities associated with generative AI. One memorable quote summed up the prevailing sentiment: Your job will not be taken over by AI, but by another person who uses AI!

Your job will not be taken over by AI, but by another person who uses AI!

When discussing the impact of AI on talent, panelists suggested that actuaries should diversify their skills by working in areas such as underwriting or data science and gain experiences outside their departments to help create a stronger talent bench strength with Data, AI, and deep Insurance skills.

?

The outlook for actuaries is regionally very positive. One panel member shared that regulators in Indonesia and Vietnam now require Non-Life insurers to have actuaries present. The demand for these professionals is growing, but there is a shortage of available talent, particularly in SE Asia.

While innovating, don't forget to keep the Human Touch.

As the insurance industry grapples with digital transformation, generational shifts, and a talent shortage, leaders must embrace change, foster an innovation culture, and adapt to the needs of their customers.

Knowing and taking this as a given, I very much enjoyed the presentations of?Jochen A. Haug?and Allianz on how insurance, despite all the technical advances, still needs to have a "Human Touch."?

When an emergency happens, we do not want to receive a message from a bot checking in on how you are, but rather, hear a human voice to ask: "Are you ok?"

It is time for the insurance industry to fully embrace this wisdom and navigate through the exciting yet challenging landscape of Asia.

These is partly my observation amidst the many great panel discussions I've heard during these events.?

Meeting in person again feels fantastic, and it's wonderful to have the opportunity to discuss these matters face-to-face once more. Small steps back to normality!?