By Peter Egwuatu

Ernst & Young, EY, has emphasized the need for insurers to digitize their core processes, migrating to the cloud and embracing flexible sourcing models to boost their services.

The 2022 Global Insurance Outlook report released by EY, a leading global professional services firm, indicated that the insurance outlook series reflects the dynamic and purpose-driven moment for the industry, focusing on open insurance and ecosystems, workforce transformation and sustainability.

READ ALSO:Keystone Bank employees pay school, WAEC, BECE fees for over 200 students in Imo, Abia states

According to the report: “Though these three especially powerful trends are currently shaping the market, there are also other areas where insurers are encountering compelling opportunities and, potentially, severe risks.”

It added, “Insurers must continue to address their technology by digitizing core processes, migrating to the cloud and embracing flexible sourcing models. The current landscape is also notable for its fragmentation; convergence and intense competition, including from a mix of non-traditional players; and widespread collaboration. Carriers will look to partner with or acquire the most promising InsurTechs, and banks and asset managers will offer more protection products and seek to differentiate on holistic financial wellness value propositions, forcing insurers to choose between collaboration and competition.|”

Rotimi Okpaise, EY Insurance Leader for West Africa, said : “Our Global Market report aligns with expectations in West Africa. Ecosystems (Banks, Telecoms, Insuretecs) are gradually developing in our region, aimed at expanding the Insurance customer base and increase our low insurance penetration levels.

Efforts are being made to engage customers better, know their needs, segment the customer base and, develop, market, and sell affordable relevant products and in the process, increase the sectors Revenue base. There are data-sharing regulatory hurdles to scale, but these are broadly deemed surmountable.”