Insurers in Asia/Pacific Expected To Enhance Alternative Distribution Channels and Focus on Customer Experiences in 2010, says IDC Financial Insights

Singapore and Hong Kong – January 21, 2010 – In the bid to further reduce their reliance on traditional agency networks, Asia/Pacific insurers will continue to seek alternative distribution channels such as bancassurance in 2010, says IDC Financial Insights. The move will also aid them in catering for the divergent buying preferences of policyholders. More insights are revealed in the report entitled "Asia/Pacific Insurance 2010 Top 10 Predictions: Prescriptions for the Upturn", (Doc # FIN220980), which compiles the top 10 predictions in 2010 to help insurers emerge sharper, stronger, and more resilient as they climb out of the economic crisis.

"Priorities this year are around managing the agency distribution network. Insurers are likely to scramble to equip distributors with easy-to-use tools and technologies, provide them with self-service marketing applications and incentivize with clear performance metrics. They are also likely to leverage off alternative channel capabilities," comments Li-May Chew, CFA, Senior Research Manager for IDC Financial Insights Asia/Pacific.

"Meanwhile, there will be an ongoing focus on data management to transform disparate data into actionable information. As a result, insurers are likely to roll-out CRM technologies to gain insights into consumers' behavior and thereby tailor-make better customer experiences."

With the economic malaise having driven home the need to create a more dynamic business framework via the assistance of technology, IDC Financial Insights sees the business goals of insurers being infused with an even more distinct technology flavor in 2010. For instance, alternative lines of businesses such as health insurance and microinsurance are poised to become new hotspots for carriers as they attempt to diversify revenue streams, and it is in these areas where technology plays a crucial role for insurers to practically sustain these offerings.

"Change transformation initiatives continue to dominate the agenda. We see insurers innovating in this arena and investing in business process management solutions to alleviate cost and improve processes. There is also a keener interest in alternative technology delivery models such as software-as-a-service (SaaS) and cloud computing which offers a flexible, usage-based charging model," adds Chew.

Table 1 presents three of the top 10 predictions, listed by order of importance, by IDC Financial Insights Asia/Pacific. These predictions incorporate the opinions of IDC Financial Insights, and are formulated from IDC Financial Insights' research and ongoing conversions with industry practitioners and vendors.

Table 1: Top 3 Predictions for Asia/Pacific Insurance, 2010

Source: IDC Financial Insights Asia/Pacific, 2010

Besides providing insurers with an overview on what fellow peers are focusing resources on to revolutionize their business strategies and architecture, this document also provides IT vendors with a better understanding of how best to position their offerings to complement the priorities of insurers.

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