Microinsurance Learning Sessions MEFIN Public Private Dialogue (PPD5) on Inclusive Insurance Plenary session 5: Insurtech in Agriculture 22.3.2018
IT Innovation & Technology Trends A compass for digital insurance
What means digitalization predictions for the next years 100 M Shopping augmented 30% Browsing with no screen 20% Abandon mobile apps 40 % IT Versatility with people centric roles 20 % of activities involve digital giants 2020 2020 2019 2021 2021 5 of 7 50% 95 % $1T 30 % Digital giants disrupt herself 2020 BOT development over mobile development 2021 New products contain sensors and IOT 2020 Saved with Internet of Things 2022 Visual and voice Search drive commerce revenue 2021 Source: Gardner Munich Re Foundation 3
Advent of new trend technologies in the insurance industry 90% of the insurers agree that The rely on technology to launch new products and services faster than the competition Using technology of customer data and risk data is a priority for them Technology can help to increase customer loyalty Source: Munich Re, based on Everest survey with CIO / IT Executives NA Insurance companies / 2017 Munich Re Foundation
Technologies trends - Four primary trend fields User Centric Worlds Internet of Things Artificial Intelligence Data Era Source: Munich Re, Images: used under license from shutterstock.com Munich Re Foundation IT Trend Radar 2017 02 April 2018 5
IT Trend Radar 2017 Smart Dust Web of Thought Extension Smart Textiles Conversational Interfaces Autonomous Vehicles Smart Bots Industrial Internet of Things Advanced Machine Learning 3D/4D-Printing Robotic Process Automation Automated Machine Driven Decisions Quantum Computing Autonomous Robotics & Drones Serverless Computing Augmented & Virtual Worlds Telematics Open API and Data Wearable Devices Loc-based Services Blockchain Technology Predictive Analytics Shareconomy Digital Health Services Mesh App & Service Architecture Haptic Technologies User Centered Design Smart Home Digital Technology Platforms Digital Twin New Payment Models Digital Identity Cybersecurity Context Aware Systems Hold Watch list Assess Evaluation needed Trial Initiatives in affected units Adopt Start initiatives in your unit Source: Munich Re, Munich Re Foundation IT Trend Radar 2017 02 April 2018 6
The reality of agricultural microinsurance today
Key challenges 1. Low premium and high transaction costs per client 2. Low and irregular income: volume is a key 3. Lack of insurance knowledge 4. Lack of infrastructure 5. Insurance illiteracy 6. Ensure client value 7. Lack of data 8. Regulation Munich Re Foundation 22.3.2018 8
La Positiva Peru Source: La Positiva, Field trip 13th IMC Munich Re Foundation 22.3.2018 9
Examples of digitalization in agricultural insurance
Remote sensing Source: GAF AG, Presentation Relin, 13th International Microinisurance Conference 2017 Munich Re Foundation 22.3.2018 11
Remote sensing The potential is obvious: independent data from space covering huge areas, everyday partly free of charge (e.g. Landsat and Sentinel, MODIS, ) Source: GAF AG, Presentation Relin, 13th International Microinisurance Conference 2017 Munich Re Foundation 22.3.2018 12
RFID tags for cattle insurance in India Source: Presentation Bhatla, 7th International Microinisurance Conference 2011 Munich Re Foundation 13 22.3.2018
Example: ACRE Africa - Leveraging on technology for registration and monitoring of agricultural insurance Source: ACRA Africa Presentation Kariuki, Microinsurance Learning Sessions, Kenya, 2016 Munich Re Foundation 22.3.2018 14
Mobile insurance
Overview 2016 at a glance I Source: GSMA State of the Industry Report 2006-2016, 2017, p.8 Munich Re Foundation 22.3.2018 16
Mobile money coverage 2/3 of low- and middle-income countries Source: GSMA State of the Industry Report 2006-2016, 2017, p.56 Munich Re Foundation 22.3.2018 17
Mobile insurance Mobile technology and mobile money has a huge potential for the financial industry - including insurance - in developing markets. There are already over 500 million registered mobile money accounts (2016). 2016: 106 mobile-enabled insurance services in 31 countries reaching over 50 million clients. The largest mobile insurance companies BIMA and MicroEnsure reached 40 million clients in 2016 in Asia alone (compared to around 5 million in 2013). Source: GSMA State of the Industry Report 2006-2016, 2017; World map of Microinsurance / Munich Re Foundation Munich Re Foundation 22.3.2018 18
Thank you Dirk Reinhard Vice Chairman Munich Re Foundation dreinhard@munichre-foundation.org