After the financial crisis in the European Economic Area (EEA), life insurance business was significantly influenced by volatile market conditions, low interest rates, pressures from regulatory bodies, changing customer demographics and investment patterns.
These undesired economic conditions caused a dramatic increase in the protection gap. The insurance protection gap or underinsurance shows us the difference between the amount of actual need for insurance coverage and the amount that is purchased. This significant gap reached $21 trillion in the U.S. 58% of American families would not be able to cover their expenses just a few months after a loved one from their families passed away. European Union countries are in a similar situation. Sadly, the coverage gap reached $17 trillion in the EEA. Moreover, inequality is widening faster than ever. Current social security systems are strained because people live longer lives and job security is not a given anymore.
When we look at other contributors to the protection gap, we see the negative perception about life insurance among customers. Life insurance is found to be very complicated and requires very bureaucratic processes to acquire, and policy premiums are not affordable. So, simplifying life insurance, especially for the new generation of insurance buyers, will be crucial for insurers’ future. The key of success is definitely insurtech!
AIG further strengthens their leading position in one of their biggest Asian markets so far – Malaysia.
AIG Drive Master in Hong Kong is the first bilingual mobile insurance proposition in Asia and AIG on the GO is Singapore has been named among top 3 UBI mobile propositions in Asian market in 2018. With the latest addition of the program in Malaysia, AIG becomes one of the most dedicated Insurance company in the Asian market, that pursues digital transformation on the customer relationship side. With this technology, AIG can understand customers’ individual needs based on smartphone sensors, context, and algorithmic learnings. Most importantly, It is part of the overall company’s commitment to safer roads. Learn more here.
About AIG Malaysia
AIG has been serving the Malaysian community since 1953, offering innovative solutions to the changing needs of individuals and corporate clients. AIG Malaysia operates out of 15 offices nationwide and is supported by a professional network of Agents, Brokers, Schemes and have Direct capabilities to service your insurance needs at your convenience. Access the latest AIG developments and news here.
Amodo platform enables insurers to develop a new category of products based on behavior and usage data. The Platform collects data from smartphones and other connected devices in order to build holistic customer profiles, providing better insights into customer risk and customer products needs. Amodo technology and methodology is approved by insurers around the world.