Munich Re’s African Insurance Survey Results The OESAI ... · Munich Re’s African Insurance...
Transcript of Munich Re’s African Insurance Survey Results The OESAI ... · Munich Re’s African Insurance...
Munich Re’s African Insurance Survey ResultsThe OESAI Extension
August 2017Greg Becker – Business Development Actuary
Thank you for your responses…
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Munich Re's Life Insurance Survey 2015, Survey ResultsMunich Re's Life Insurance Survey 2016 - Ghana, Survey ResultsMunich Re's Life Insurance Survey 2016 – East Africa, Survey ResultsMunich Re's Life Insurance Survey 2016 – Uganda, Mauritius and Mozambique, Survey ResultsMunich Re's Life Insurance Survey 2017 – Namibia Survey Results
Results…
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The respondents rate different parts of Africa as having different levels of innovation
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Munich Re's Life Insurance Survey 2015, Survey ResultsMunich Re's Life Insurance Survey 2016 - Ghana, Survey ResultsMunich Re's Life Insurance Survey 2016 – East Africa, Survey ResultsMunich Re's Life Insurance Survey 2016 – Uganda, Mauritius and Mozambique, Survey ResultsMunich Re's Life Insurance Survey 2017 – Namibia Survey ResultsOESAI and Munich Re's Life Insurance Survey 2017 – Survey Results
LIFE
Non-life
What is the insurance industry’s biggest challenge?
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Customer respect and meeting customer needs and lowering costs!
Munich Re's Life Insurance Survey 2015, Survey ResultsMunich Re's Life Insurance Survey 2016 - Ghana, Survey ResultsMunich Re's Life Insurance Survey 2016 – East Africa, Survey ResultsMunich Re's Life Insurance Survey 2016 – Uganda, Mauritius and Mozambique, Survey ResultsMunich Re's Life Insurance Survey 2017 – Namibia Survey ResultsOESAI and Munich Re's Life Insurance Survey 2017 – Survey Results
What is your employers biggest challenge?
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Munich Re's Life Insurance Survey 2015, Survey ResultsMunich Re's Life Insurance Survey 2016 - Ghana, Survey ResultsMunich Re's Life Insurance Survey 2016 – East Africa, Survey ResultsMunich Re's Life Insurance Survey 2016 – Uganda, Mauritius and Mozambique, Survey ResultsMunich Re's Life Insurance Survey 2017 – Namibia Survey ResultsOESAI and Munich Re's Life Insurance Survey 2017 – Survey Results
Special cases like Namibia……Everyone is focusing on regulation…
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Regulators should… (Option a, option b, both – almost everyone chose both)
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…ensure that insurance companies are sufficiently capitalised (incl. hold
enough reserves) so that policyholders never lose out in the
event that an insurer goes insolvent
…ensure that regulations encourage innovation and growth, and lead to an increase in the insured population (eg due to improved financial literacy and
encouraging customer centric products)
POLICYHOLDER PROTECTION ENCOURAGE GROWTH
DO BOTH
What should the regulators do?
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Setting sensible capital adequacy
regulations54%
Measures to improve market dynamics by improving the ability
of consumers to evaluate competing offerings (eg
proposing a standard set of Critical Illness definitions or
industry standard policy wording)24%
Developing strategies to
improve financial literacy levels,
and in particular a wider
understanding of the positive impact of insurance products
68%
Policing the industry and help keep poor providers out of the market before they have the chance to
damage the industry's reputation
36%
Different regions see the future of distribution differently
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Munich Re's Life Insurance Survey 2015, Survey ResultsMunich Re's Life Insurance Survey 2016 - Ghana, Survey ResultsMunich Re's Life Insurance Survey 2016 – East Africa, Survey ResultsMunich Re's Life Insurance Survey 2016 – Uganda, Mauritius and Mozambique, Survey ResultsMunich Re's Life Insurance Survey 2017 – Namibia Survey ResultsOESAI and Munich Re's Life Insurance Survey 2017 – Survey Results
Different regions see the future of distribution differently
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Munich Re's Life Insurance Survey 2015, Survey ResultsMunich Re's Life Insurance Survey 2016 - Ghana, Survey ResultsMunich Re's Life Insurance Survey 2016 – East Africa, Survey ResultsMunich Re's Life Insurance Survey 2016 – Uganda, Mauritius and Mozambique, Survey ResultsMunich Re's Life Insurance Survey 2017 – Namibia Survey ResultsOESAI and Munich Re's Life Insurance Survey 2017 – Survey Results
Different regions see the future of distribution differently
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Munich Re's Life Insurance Survey 2015, Survey ResultsMunich Re's Life Insurance Survey 2016 - Ghana, Survey ResultsMunich Re's Life Insurance Survey 2016 – East Africa, Survey ResultsMunich Re's Life Insurance Survey 2016 – Uganda, Mauritius and Mozambique, Survey ResultsMunich Re's Life Insurance Survey 2017 – Namibia Survey ResultsOESAI and Munich Re's Life Insurance Survey 2017 – Survey Results
What the future might just look like…
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Is insurance penetration going to increase?
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South Africa
Munich Re's Life Insurance Survey 2015, Survey ResultsMunich Re's Life Insurance Survey 2016 – Uganda, Mauritius and Mozambique Survey ResultsMunich Re's Life Insurance Survey 2017, Namibia Survey ResultsOESAI and Munich Re's Life Insurance Survey 2017 – Survey Results
Insurance penetration is very low in AfricaMarginal growth off a low base is not much of
a future
Fighting over the pie or growing the pie?
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Munich Re's Life Insurance Survey 2017, Namibia Survey ResultsMunich Re's Life Insurance Survey 2016 – Uganda, Mauritius and Mozambique, Survey ResultsMunich Re's Life Insurance Survey 2015, Survey ResultsOESAI and Munich Re's Life Insurance Survey 2017 – Survey Results
If we are going to grow the market, we may have to consider all distribution channels & be segment specific
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Analysis presented at the MunichRe Foundation’s 2016 MicroInsurance Event
What role will mobile phones play in our industry’s future?
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Mobile phones have the potential to disrupt the entire insurance cycle
OESAI and Munich Re's Life Insurance Survey 2017 – Survey Results
What about micro-insurance?
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Microinsurance requires simple products with
simple/no underwriting
50% There is no money in microinsurance – it is more like charity than real business 8%
Microinsurance is a great way to
increase market penetration and tap underserved
populations62%
Microinsurance requires low cost
distribution channels, and is
well suited to digital and mobile
distribution62%
Reminds me of this….
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§ Improved personal identification
§ Economic growth
§ Increased incomes
§ Increased wealth
§ Increased insurable assets
§ Improved education
§ Improved financial education
§ Improved healthcare
§ Improved digital access
§ Regulators seeing their role as covering both policyholder protection and industry growth
§ Industry initiatives to grow financial literacy
§ Industry initiatives and bold companies who aim to standardize policy wording and simplify products
§ Innovative companies and startups who use non-traditional distribution channels and partners
§ Digital… access, education, underwriting, administration…
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We will need external enablers in combination with industry initiatives
External enablers Industry initiatives
Questions and Comments
Thank you for your attention
Contact: Greg [email protected]