In this article you will find:
ho provides security for insurers? The insurance industry in Latin America presents us with a contradictory and difficult-to-read scenario; on one hand, extremely promising, and on the other, full of risks. What is the answer? We'll tell you in this article!
Powerful tools are transforming the insurance business model. However, a humble instant messaging app is the one revolutionizing the insurance market, accelerating its speed and movement.
Yes, I'm talking about WhatsApp! Not coincidentally, the word market comes from Mercury, the messenger god of the Greeks who had wings on his feet; buying and selling can be summed up as an exchange of messages.
That's why WhatsApp has become a fundamental tool to seize opportunities and overcome challenges. This is what we'll discuss today. In this article, you'll see:
- The resilience of the insurance market in Mexico and Latin America
- Opportunities - the 3 technologies
- The impact of Insurtech on the sector's transformation
- Global and regional challenges
- Who provides security to insurers
The Resilience of the Insurance Market in Mexico and Latin America
“By the end of 2020, of the 128 million inhabitants in Mexico according to INEGI, 93 million had some type of insurance (including all direct policyholders or insured persons and their family members), representing 72% of the population.” - Penetration of Insurance in Mexico, Secretariat of Finance and Public Credit of Mexico.
In recent years, the insurance market has faced unprecedented challenges, yet it has grown considerably.
- The COVID-19 pandemic destabilized economies and altered consumption patterns;
- Inflation and the devaluation of local currencies put pressure on individual and corporate finances;
- Wars (such as Russia and Ukraine) and other global events have generated economic and social uncertainty.
These factors forced insurers to adapt quickly, reformulating their strategies to stay afloat, thrive in a constantly changing environment, and demonstrate remarkable resilience in the face of adversity.
Mexico
The insurance market is growing at a steady pace, driven by the increasing demand for health and cyber insurance. The pandemic highlighted the importance of these products, and Mexican insurers have responded effectively to this emerging demand.
According to AMIS (Mexican Association of Insurance Institutions) the insurance industry is solid and solvent with surprising data:
- The sector triples the amount of capital required by law;
- By the second quarter of 2022, industry premiums reached 350.561 billion MXN;
- The industry paid 200 billion MXN to its insured;
- Life insurance is the operation with the highest amount.
Colombia
In 2021, against a backdrop of global premium growth of 3.4% and 3.7% in Latin America, Colombia reported a premium growth of 10.2%, positioning itself as the third-largest market in Latin America.
Brazil
Brazilian insurers have invested significantly in digitalization and customer experience improvement, resulting in greater market penetration.
Argentina
Inflation and the devaluation of the Argentine peso have led insurers to adjust their strategies and offer products more adapted to local needs.
Opportunities - The 3 Technologies
Great opportunities come with the adoption of new technologies, and there are three that are revolutionizing how we operate and offer our services:
- WhatsApp;
- Blockchain;
- Artificial Intelligence (AI).
Does it make sense to compare a messaging app with two overwhelming concepts like AI and Blockchain?
That is precisely the superpower of WhatsApp: super-fast, super-simple, and super-efficient at integrating into your customers' routines, while the other two are still concepts in the process of being understood.
WhatsApp: The Customer Magnet
Potential customers are always connected, and directing them to your insurance company depends on being on the right channels and meeting three key expectations:
- Simplicity: Agile and frictionless processes that quickly respond to customer needs.
- Personalization: Establishing close and personalized relationships with customers, offering precise recommendations and tailored messages.
- Omnichannel Experience: Being present on customers' favorite channels, especially digital ones, providing an integrated and exceptional experience.
WhatsApp guarantees:
- Instant and effective communication with quick and direct responses.
- Effortless integration to ensure an omnichannel experience.
- Intelligent automation and segmentation to personalize your communication.
All this securely, with all the layers of protection your company deems necessary.
Blockchain: Transforming Trust and Transparency
This technology uses a decentralized network and an immutable ledger system to store data securely and transparently, with the potential to transform how we manage contracts and claims.
- By using blockchain-based smart contracts, we can automate processes, eliminate intermediaries, and reduce administrative costs. Moreover, the immutability of blockchain records ensures data integrity and reduces the risk of fraud.
Artificial Intelligence: Enhancing Personalization and Efficiency
With advanced algorithms and sophisticated data analysis, AI allows us to analyze large volumes of information to identify patterns, predict behaviors, and make more informed decisions.
In the insurance sector, AI is used for a wide range of applications, from risk assessment and pricing to customer service and claims management.
- AI-powered chatbots can provide quick and accurate responses to customer inquiries, improving user experience and reducing the burden on human staff.
- Additionally, AI algorithms can analyze claim data to identify trends and potential fraud, enabling proactive measures to mitigate risks and enhance operational efficiency.
The Impact of Insurtech on Sector Transformation
Insurtech, startups using innovative technology to transform the insurance industry, play a crucial role in accelerating the sector's digital transformation by offering more agile, efficient, and personalized solutions.
- By using digital platforms and data-driven business models, these companies reach market segments traditionally underserved by traditional insurers.
They also simplify the insurance purchasing process, making it faster and more convenient for customers.
Claims
Another area where Insurtech is innovating is claims management.
- By leveraging technologies like AI and Natural Language Processing (NLP), these companies can automate much of the claims process, reducing response times and improving customer experience.
Global and Regional Challenges
The interconnection of financial markets and economic volatility directly impact the demand and supply of insurance, as well as insurers' ability to operate and grow sustainably.
Preventing Fraud
The insurance industry faces a trust crisis, evidenced by alarming figures: fraud costs the sector $42 billion annually.
This risk is particularly high during customer acquisition and onboarding processes, where insurance companies are more vulnerable.
To combat fraud, companies must:
- Detect and deter: Implement systems to identify potential fraud before it occurs.
- Intercept: Have mechanisms to stop ongoing fraudulent activities.
- Comply with regulations: KYC (Know Your Customer) and AML (Anti-Money Laundering).
The key is to automate trust by creating seamless and reliable processes integrated with technological solutions that ensure user identity using the same channel (WhatsApp).
Offering Financial Protection
The need for financial protection becomes even more evident. People and companies seek to safeguard their assets and wealth against risks like job loss, currency devaluation, and catastrophic events that can result in significant financial losses.
Diversifying Products and Services
To seize these emerging opportunities, insurers are diversifying their product and service offerings to meet the changing needs of the market.
Adapting to Reforms and Legislative Changes
These reforms can affect the operating and regulatory environment of the insurance industry, presenting both challenges and opportunities for insurance companies that can adjust and respond effectively to changes in the legal and regulatory landscape.
Who Provides Security to Insurers?
The answer is Truora, with its cutting-edge technology, it ensures that your insurance company can use WhatsApp to capture leads, performing all necessary security processes without leaving the app.
The security your company deserves to provide the service your customers deserve. Don't wait any longer, share this article with your contacts to experience more opportunities and overcome more challenges.
