As digital technologies evolve, companies are finding new ways to speed up processes, reduce costs and strengthen their brand recognition in the market. Firms are continuing to boost investments in artificial intelligence, machine learning and big data and expand use of telematics, mobile phones and table computers. We explore some of the innovative initiatives and challenges that companies face in three different emerging markets.

Even though digital channels have become a more significant method for selling insurance across India, brokers and agents continue to be the dominant point of sales. While the younger generation of consumers evaluate and assess insurance products online, the actual sale usually requires a face-to-face conversation with the agent.

By developing an end-to-end sales tool for the front-line sales staff, we are helping Indian firms develop a robust “hybrid model” where digital tools help agents find the right products to sell to the right customers. Equally significant, the move to digital sales allows agents to develop and store customer data based on their daily client interaction. Over time, this will allow agents to change their sales approach from a service delivery model to one where they own and manage client relationships, thus leading to cross-selling opportunities.

While customers for non-life policies, like travel or motor insurance, are rapidly moving to embrace digital solutions, agents will continue to be a cog in the life insurance market. However, harnessing digital applications on mobile phones can reduce friction, boost efficiency and improve the quality of sales, which may be the optimal means of servicing the Indian market.l

Bancassurance accounts for nearly one-third of all revenue generated by financial institutions in Brazil, mainly from commissions and asset management fees. As digital banking gains momentum, banks must find new ways to present their insurance products to their would-be customers even though many customers still expect personal interactions to secure a sale.

We focused our efforts with key banking clients on streamlining the distribution process within banks to reduce the time required for underwriting and processing life insurance products. The new system identifies the technical requirements to develop a policy and rapidly generates price quotes. Such a business processing system is critical for smooth communication and integrating banking and insurance.

Looking ahead, the largest growth opportunity in the Brazilian market will be most likely to emerge from annuity and universal life products which will continue to be distributed mainly by banks. Increasingly, banks must recognize the need to establish an insurance operating model that works for mobile and internet banking. This will require them to develop specialized teams that are able to sell more customized insurance solutions. New business models would leverage the customer data they receive from both, banking and insurance operations, to develop tailored products for individual clients.

Dgital will not replace agents

The three emerging markets illustrate how distribution is changing for the insurance industry. The rise of digital platforms will help insurers speed up processes and further reduce costs. In markets like South Africa, telematics is being used to assess driver behavior in underwriting automobile insurance, while smartphones in India help confirm coverage of new policies.

Though many products lend themselves to digital solutions, agents and brokers still matter and play an important role. The relationships they have developed with customers cannot be readily displaced. As a result, direct or online distribution will take time to mature in these markets, but the future looks promising.