Insurers are facing significant obstacles in their efforts to digitally transform, with job security concerns, digital illiteracy, and high costs cited as major barriers, according to Andrew Samaratunge, Chief Financial Officer at Generali Thailand.
In a recent statement, Samaratunge highlighted that the challenges within the industry are less about resistance to change and more about inertia. “There’s more focus on short-term performance measures, especially for financial institutions. We have a long history of providing financial security, which leads to a tendency toward conservatism and risk aversion,” he explained.
One of the key issues insurers face in their digital initiatives is the narrow application of digital tools to traditional models, particularly in customer acquisition and engagement. “Insurance remains a business that intermediates between low customer awareness and actual needs,” said Samaratunge. He added that digital efforts such as proprietary websites and mobile apps often struggle to scale effectively.
Samaratunge proposed expanding the scope of digital tools. For example, proprietary websites could evolve into white-label sales portals that serve multiple distribution channels. Meanwhile, mobile apps could be enhanced with lifestyle features, including loyalty programs offering discounts on retail, dining, travel, and health services.
To drive the necessary change, Samaratunge stressed that leadership must play a pivotal role in digital transformation. “Leaders need to drive digital change from the top down while also fostering it from the bottom up,” he said. A clear vision, strategic commitment, and involving executives in the transformation process are vital. Creating a culture of experimentation, where both successes and failures are valued, is also crucial.
On the bottom-up front, Samaratunge emphasized embedding digital goals into staff development, recruitment, and training. Appointing digital transformation champions and fostering an environment that encourages agility, iterative processes, and collaboration between digital and insurance experts are also essential to the success of these initiatives.
While noting that the finance sector is often slower to adopt digital change compared to other industries, Samaratunge urged insurers to accelerate their transformation efforts to better meet the demands of evolving customer needs and stay competitive in the market.
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