Reinsurers in Asia have recently embraced technology to improve their services to insurance clients and end-customers, says Fitch Ratings. The faster processing of reinsurance transactions means an improved service for insurance clients who are able to speed up processes for their policyholders.
These increasingly sophisticated tools allow for automated data analysis and claims assessment and will create a new area of competition for Asian reinsurers, as companies in the region try to differentiate themselves in an industry that has traditionally competed on price, Fitch says.
This improved value-offering means reinsurers can ultimately charge more, and Fitch expects this trend to result in reinsurers becoming more service-driven and the development of more digital services, such as risk-management knowledge sharing and online transaction platforms.
These in-turn would benefit insurance clients directly by making their processes more efficient, improving underwriting and reducing costs.
Asian reinsurers may also partner or invest in insurtechs to accelerate business growth and increase efficiencies. Fitch believes they may receive capital gains from investment made in insurtech companies, as well as benefit from distribution networks, advanced data and underwriting analytics.
