Fidelity bank banner UBA banner
Businesses face disruptive forces

By News Express on 27/07/2016

Share on facebook Yahoo mail icon Gmail icon Share on Google+

Views: 1,430


Andreas Berger, Chief Regions & Markets Officer and Member of the Board of Management at Allianz Global Corporate & Specialty (AGCS) SE, informed risk managers, insurance professionals, brokers and business leaders at the annual Insurance Conference in Sun City on July 26 that businesses operating on the continent face a wider range of disruptive forces in 2016 and beyond.

“The effects of globalisation, digitalisation and technological disruption pose fundamental challenges to many industries,” says Berger, who was born in Rwanda. “The emergence of Internet of Things (IoT), smart factories, data analytics, artificial intelligence to name but a few could result in higher risk of large-scale losses due to increasing interconnectivity.”

Businesses based in Africa have a particular role in embracing and responding to new technologies compared to mature markets as there is an urgent and important need to grow their enterprises and economies rapidly. “They need to move with speed through the 3rd industrial revolution into the digital era, but need adequate policies and infrastructure to manage this transformation,” he says. “Businesses operating in the retail insurance sector have been particularly good at using mobile, digital and social media technology to provide simple and convenient products and sales channels and this is gradually increasing in the business to business arena as well.

For example, future risk assessments in Africa by risk engineers will occur through new channels such as mobile insurance drones rather than on-site visits thus presenting the key to the future of business insurance through developing digital capabilities that address superior customer experience.

New risk transfer solutions required

However, he warned businesses that connected industries require new insurance solutions that will cater for emerging risks.  “While frequency losses are expected to decrease due to predictive maintenance, there is a higher risk of large-scale losses due to increasing interconnectivity. In addition to this, there are new liability scenarios evolving as human error is being replaced by technical failure resulting in increasing importance of product liability.

Berger states that cyber vulnerability is another risk which companies are very concerned about. Attacks by hackers are becoming more target-oriented, lasting for longer and can trigger a continuous penetration. Cyber activity is at the top of long-term risks in Africa and around the globe.

Digital interconnectedness risks such as business interruption through non-malicious activity, physical damage following a non-malicious IT error, loss of intellectual property, and failure of utility services are risks that companies would like to insure against, but there is currently only limited insurance solution available in the market. “Insurers need to work with clients to consider the changing loss pattern and new emerging risks,” explains Berger. “There must be a review of insurance solutions and risk mitigation practices to reflect these new risk management realities. Refining existing and developing new risk services will be necessary by businesses and insurers.”

Embrace new technologies

The insurance industry should also consider the broader use of digital technology to improve customer experience and to create new risk transfer solutions for the digital economy. Insurance companies need to acclimatise to new business models and conduct advanced risk assessments through data analytics for new customer services. The internal transformation for insurance companies means that processes should be digitalised to increase quality and productivity and require a highly permeable non-silo structure that allows flow for skills and ideas.

•Photo shows Andreas Berger.

Source News Express

Posted 27/07/2016 9:55:12 PM

 

Share on facebook Yahoo mail icon Gmail icon Share on Google+


 

CLASSIFIED ADS

 

You may also like...
2015 Presidency: Okorocha declares Nov. 25

Abia Communities shielding drug barons, says NDLEA Commander...

Bring perpetrators of Southern Kaduna crisis to book,...

Ministry, PTA at war over school fees increment,...

BSN Nigeria introduces Doctorate studies in Business Administration,...

Dakuku rouses African maritime stakeholders to fight for...

Labour, activists raise the alarm over Rivers’ new...

Impeachment Mission: Oshiomhole, APC Senators meet to plot...

Ex-SEC DG Arunma Oteh bags World Bank appointment,...

France warns of impending terror attacks in West...

Corruption: Senate berates MDAs for operating without budget...

Condemnations trail attack on Ogba Zoo, Benin

 

Latest News Tinubu orders Ambode’s impeachment: Report Boko Haram on rampage in Borno, kills 38 Troops kill wife of Benue militia leader, 12 loyalists Buhari’s men, governors plot Oshiomhole’s downfall IGP asked to account for 56 missing police rifles Paris club loan: Ondo workers threaten showdown with governor Police uncover bodies of Abia pastor, two church members Governor Sani-Bello mourns former CJN Kutigi, says, he was an iconic legal giant Peter The Rock: Atiku made a wise choice picking Peter Obi as running mate for 2019 presidential election, By Ray Ekpu Philanthropist donates N1m, solicits support for Bayelsa flood victims AfDB gives $50m to Fidelity bank for SMEs UBEC’s N51b lying fallow as states fail to access fund

 

Most Read NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (408,110 views) Nigerian female sex addict opens up, says ‘I like it with both men and women’ (383,178 views) Shameless Genevieve Nnaji exposes breasts in public (315,554 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (258,534 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (238,027 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (224,759 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (204,562 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (185,996 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (170,778 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (166,160 views) Lagos plane crash: Journalist releases victims’ names (161,822 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (149,562 views)

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (69) Business & Economy (3,701) Business Verdict (52) Columnists (949) Complaints & Requests (94) Enterprise & Opportunities (207) Entertainment (560) Features (660) Global Business Monitor (304) International (2,557) Interview (165) Live Commentary (28) Love Matters (145) News (39,795) Opinion (1,126) Pidgin (13) Politics (7,319) Religion (883) Sports (1,737) Stock Watch (35) AMA & Al Jazeera Global Update

 

NLNG Prize for Literature 2018

Zenith Zero Balance

CBN banner

Firstmobile banner

 

 

 

NEWS EXPRESS TV

LIBYA vs NIGERIA 2-3 Goals Highlights

 

APO Group Partner

 

 

CLASSIFIED ADS

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera

Advertisement