Insuring the emerging and frontier markets Technolog‹ as a disrutie force in emerging and frontier markets ˆhe use of technooy can he faciitate ˆechnooy is ein used y insurers to simify rocesses across the vaue chain… insurance enetration in frontier markets‡ from desinin simer roducts… everain new sources of data for marketin… artnerin with fin†tech ayers in distri ution… and usin advanced anaytics in caims rocessin‡ In this way… technooy is acceeratin the deveoment of the insurance usiness in emerin and frontier markets… such that what took many years of deveoment in the advanced markets is ein comressed into “ust a few years in the emerin territories‡ ˆhis can suort increased insurance enetration in the emerin and frontier markets… and he domestic and forein ayers esta ish a footrint there‡ Figure 12 ƒroduct ˜arketin ‚istri ution New usiness Œaims ˆhe use of technooy in the insurance deveoment and vaue chain underwritin ̤ Žimified ̤ ŒustomiŠed ̤ ˜ake rura ̤ ‘ternate data ̤ ‘naytics to roduct marketin distri ution for instant uncover fraud desin and verification rins and sementation ̤ Issue oicy socia ̤ ‘fforda e without fiin ̤ Eectronic networks index† ased ̤ ‘orithms to aication coection of insurance anayse forms documents ̤ ‚rones mo ie data ̤ ‘naytics varia es ̤ ˜ix diita ̤ ¦eara e ̤ ‰iometrics… driven saes with devices identity roducts to ̤ Žtart†u hih†touch atforms coe with enaement saes unišue risks Žource: Žwiss ‹e Economic ‹esearch Ÿ Œonsutin‡ ˆhe use of mo ie technooy can he Žimified roduct desin: Insurers in frontier markets are usin mo ie technooy insurers to identify and reach otentia to deveo sime roducts to et initia access to customers‡ ˆhey offer ife or cients… … heath insurance ased on monthy airtime usae on a mo ie†service account‡ ˆhe coverae may initiay e ow… ut it hes insurers identify cients who coud otentiay send more money on insurance as disosa e incomes rise‡ Œro insurance is aso an area rie for diita innovation… with insurers ike ‘cre ‘frica offerin mo ie† ased index insurance y artnerin with mo ie oerators and ari usiness‡¡¢ —irms are aso exorin the feasi iity of coectin accurate weather data usin mo ie†ena ed sensors em edded in soar†owered ihtin systems‡¡ —inay… new roducts are ein deveoed for some risks confrontin emerin and frontier†market‡ —or exame… insurers reortedy an to offer cover for diseases ike E oa in Žu †Žaharan ‘frica y 201¢‡¡’ 37 ‘‡ ¦is and N‡ ƒshenichnaya… “˜icro†Insurance in ˜o ie ‘ricuture”… G , 201™… htt://www‡sma‡com/mo iefordeveoment/w†content/uoads/201™/0™/ ‘Œ‹E†‘frica†—ina†‹eort‡df 38 —irtual eather vanes in šena, Žwiss ‹e… 2¡ ‚ecem er 201™… htt://www‡swissrefoundation‡or/ what½we½do/o a½rorammes/socia½entrereneurshi/ªirtua½weather½vanes½in½±enya‡htm 39 E‡ ‹asmussen… “Insurance aainst disease out reaks for ‘frica”… ciDev›‹et, 2™ ˜arch 201™… htt://www‡scidev‡net/su †saharan†africa/disease/news/disease†out reaks†africa‡htm 26 Swiss Re sigma No 2/2016
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