Technological Innovation and Digital Transformation in the Insurance Industry in Asia
Technological innovation and digital transformation are two things that cannot be separated in the industrial era 5.0.
This also applies to the insurance industry in Asia, which is facing challenges and opportunities in adapting itself to the changes taking place in the world of business and society.
Technological innovation can help the insurance industry in Asia improve operational efficiency, expand market reach, offer products and services that are better suited to customer needs and preferences, and increase customer loyalty and satisfaction.
Digital transformation, on the other hand, can help the insurance industry in Asia transform into a more agile, responsive and customer-centric organization, by leveraging data, analytics, cloud computing, artificial intelligence, blockchain and other technologies that can provide added value. for customers and other stakeholders.
Thus, technological innovation and digital transformation can be the key for the insurance industry in Asia to compete and survive amidst increasingly fierce global competition.
Following are Government Regulations and Policies related to Insurance in Asia
Insurance is an important financial instrument to protect yourself and your family from unexpected risks, such as accidents, illness, disaster or death.
Insurance can also help improve people's welfare by channeling funds from insurance premiums to productive sectors, such as infrastructure, industry and agriculture.
However, insurance also has challenges and opportunities in the current era of globalization and digitalization.
Therefore, governments in various countries in Asia have issued various regulations and policies to regulate and develop the insurance industry in their regions.
The following are some examples of government regulations and policies related to insurance in Asia:
- In Indonesia, the government has issued Law Number 40 of 2014 concerning Insurance, which regulates licensing, supervision, consumer protection, dispute resolution, and insurance guarantees.
The government has also encouraged the use of information and communication technology (ICT) in the insurance industry through the Financial Services Authority Regulation (POJK) Number 13/POJK.05/2017 concerning Implementation of Risk Management for Insurance Companies Conducting Information Technology-Based Business Activities.
- In Malaysia, the government has implemented Malaysian Financial Reporting Standards (MFRS) 17, which is an international accounting standard for insurance contracts.
MFRS 17 aims to increase transparency and consistency in insurance company financial reporting. The government has also encouraged financial innovation and inclusion through a regulatory sandbox initiative for digital insurance companies (insurtech).
- In Singapore, the government has issued the Insurance Act (Cap. 142), which is the main law governing the insurance industry in Singapore.
The Insurance Act regulates licensing, minimum capital, solvency, governance, supervision, and dispute resolution. The government has also supported the development of insurtech through the Singapore FinTech Festival (SFF), which is an annual event that showcases various insurtech solutions and collaborations in Asia.
