Exploring global trends in digitalisation: Insights from InsureTech Connect Asia
As the world of life and pension digitalisation continues to evolve, bringing both opportunities and challenges, staying ahead of global trends is crucial. At Keylane, we recognise the value of understanding developments beyond national borders. By gaining insights into what is happening in other markets, we can better serve our customers and further enhance the products and services we offer.
This is why our Managing Consultant Henri Jansen recently attended the conference “InsureTech Connect Asia,” the largest insurance event in Southeast Asia, held annually in Singapore. The conference brings together industry leaders from the region and beyond, providing a dynamic environment for discovering new ideas and innovations. Singapore, a central hub in the region, is quite comparable to the Netherlands and Denmark in its advancements in ICT and high tech, while also offering access to the diverse and vibrant markets of Southeast Asia.
We’re excited to share key insights and takeaways from the conference that will empower us to further enhance our products and services, better support our customers, and lead the way in the digitalisation of the life and pension industry.
Core system modernisation
Many life and pension companies are burdened by large and outdated legacy systems that hinder their ability to grow revenue and improve operational efficiency. Despite recognising the need for replacement, they are facing challenges in making the transition for various reasons:
- Core systems are integrated into many aspects of the organisation.
- It can be challenging to build a business case for replacement since the current system is still running.
One option is to keep the existing system (for now), but this approach incurs ongoing costs for management and enhancements, as well as expenses related to addressing any issues that arise.
When planning to modernise the core system, it is important to keep the following four archetypes in mind:
- Implement a new system for a greenfield or emerging market
- Upgrade the entire operation to a new system
- Improve or rewrite the legacy system
- Build a layer on top of the legacy system, keeping the core as a system of records
Carefully determining which approach aligns best with the organisation’s current and future needs is essential.
Generative AI
Generative AI – artificial intelligence capable of generating text, images, videos, and more using generative models – is rapidly evolving. The potential use cases for generative AI in the insurance and pension industry are vast and varied.
However, employing generative AI comes with certain risks. For instance, the technology can ‘hallucinate,’ and generate misleading or false output. It may also produce biased results, reflecting existing societal biases, often based on unclear assumptions. Additionally, data security poses a significant concern, especially when using free online tools, as the final destination of the data remains uncertain.
At the conference, a few organisations expressed confidence in deploying generative AI for end consumers in the near future. However, many believe this is not fully feasible yet, primarily because the technology needs further refinement and clearer regulations are required.
Meanwhile, several organisations have successfully used generative AI internally, particularly for tasks such as analysing and summarising text or writing code. In these cases, the human factor remains crucial, as employees must evaluate the AI-generated results and decide how to act on them. Therefore, it is essential that employees are fully aware of the limitations and pitfalls of generative AI and are equipped with trusted organisational tools.
Varied regulatory landscapes
Legislators from different countries have shared their perspectives on how new technologies fit into their legal landscapes. This has shown us that regions outside the European Union often permit a different or broader application of technologies like generative AI, sometimes allowing more room for experimentation. We can learn valuable lessons from the experiences in these markets.
Conclusion
In conclusion, the insights gained from the InsureTech Connect Asia conference highlight the critical areas where the life and pension industry must focus to remain competitive and innovative. From modernising core systems to exploring the potential of generative AI, and navigating varied regulatory landscapes, it is clear that agility and a progressive approach are crucial.
At Keylane, we are committed to leveraging these insights to drive digitalisation in the life and pension industry, ensuring that we continue to deliver innovative SaaS solutions and support our customers in navigating these evolving landscapes. By embracing these advancements together, we will continue to transform the life and pension industry through technology.
More information
Please visit: https://asia.insuretechconnect.com/ for more information about the conference.