Evolving trends

At least 10 trends are expected to have a big impact on the insurance industry this year.

According to an article posted on Accenture’s insurance blog, first among these trends, is a surge in health and wellness services which were pushed to the forefront of customer concerns by the COVID-19 pandemic. It noted that insurers have responded by bolstering their traditional medical and life cover with an array of digital health and wellness products and services, adding that carriers that quickly establish a strong presence across the health ecosystem will gain a big advantage over competitors.

Second trend is the emergence of phygital as the standard. It explained that digital service and distribution channels will oust carriers’ traditional channels as the primary point of customer engagement, but the inputs of physical channels and experts will remain sought after for advice on complex decisions and offerings. Digital services that are seamlessly combined with phygital experiences, particularly on mobile platforms, will emerge as the key differentiator when consumers buy insurance.

The article also revealed that an emerging third trend is the expansion of insurers beyond their traditional markets due to advances in digital technology. It said that the flat premium revenues and low investment returns predicted for 2021 will accelerate this trend.

The fourth trend observed is the launch of innovative risk-management offerings in the wake of the pandemic. Demand for tailored products, such as business-continuity cover for small enterprises, cyber-threat protection, pandemic insurance, and event-cancellation policies are expected to soar, while interest in insurance products aimed at specific demographic groups such as young adults or retirees will be especially strong, presenting partnership opportunities between incumbents and insurtechs, it said.

In the same article, it also noted a fifth trend, and that is, traditional carriers will come to fore this year, especially since their asset strength and extensive in-house resources will enable them to weather possible adverse economic conditions and secure new revenue opportunities. This, as the insurance industry is likely to see some significant mergers and acquisitions this year, it added.

The sixth trend is that consumer trust will become a critical feature of business this year and consumers will expect their providers to give them good service, value for money, and protection of their personal information. It stressed that insurers that are perceived to have breached the trust of their customers risk substantial reputational damage as providers are expected to behave ethically in all facets of their businesses.

Seventh, it pointed out that insurers will come under growing pressure this year to demonstrate their support for sustainability initiatives that address climate change, environmental pollution, and social injustice. Those that are proactive and make visible changes across their organizations to address these issues will outshine competitors, strengthen their brand, and avoid having to catch up with regulatory requirements that may be mandated later, it said.

Eight, insurers are expected to step up their commitments to green energy as fossil fuels continue to lose favor among regulators, shareholders, and consumers. Ninth on the list is an anticipated surge in demand for pay-as-you-go insurance services, with insurers dropping fixed premiums and switching completely to usage-based fees.

And the last trend has something to do with cryptocurrencies, in particular Bitcoin. The article noted that as low interest rates continue to dampen insurers’ investment returns, they will increasingly look at the possibility of adding new asset classes to their portfolios, such as cryptocurrencies.

With the world becoming more unpredictable, the need for insurance cover becomes greater. However, insurance companies, in order to survive, have to align their businesses to the changing needs of the times.

One insurance company that continues to focus on its sustainability programs is Allianz PNB Life, which just recently unveiled a new digital campaign that stresses the need for people to continue caring about the environment.

The digital film, entitled “No Filter” conceptualized by award-winning agency Gigil, reminds us that the harsh realities of the environment cannot be fixed by simple filters, unlike when we edit our photos and make them look better.

While the ad is packaged as a feel-good watch, it is actually not. While it opens with bubbles floating past an aerial shot of the city, it then cuts to a polluted sea obscured by shining bokeh (defined as the pleasing or aesthetic quality of out-of-focus blur in a photograph). It is then followed by more exaggerated cover-ups of Mother Nature’s cries for help, including glittery factory smoke, colorful fireworks in lieu of mining explosions, and suffering animals made to look healthy.

According to chief marketing officer Gino Riola, Allianz PNB Life strives to build a sustainable future for Filipinos and with this ad, they want to show that even though the planet cannot be fixed instantly, we can help make it better.

Through its Allianz Ride Safe campaign, the company is promoting bike safety and is pushing for cycling as an alternative mode of transport in Metro Manila. It has launched the country’s first solar powered bike pit stop together with the San Juan local government. Allianz PNB Life has also set up new bike racks in four of Manila’s public squares, with the racks doubling as art installations. The insurance firm has likewise launched e-jeepneys for Makati-Mandaluyong commuters and is working to shift fully to renewable energy use by 2023.

Allianz CEO Alexander Grenz said that beyond readying Filipinos for the future with quality health and life insurance, the company wants to make sure that they can look forward to it too through a safer and greener future.

Not so hidden agenda

The Catholic Bishops’ Conference of the Philippines (CBCP), together with media agency partner DDB Group Philippines, has launched the #GodIsInYouth campaign in line with the celebration of 500 years of Christianity in the Philippines. The year-long celebration, themed “Gifted to God,” consists of multisectoral series of activities nine years in the making. The special jubilee was formally inaugurated by the Catholic Church last Easter Sunday.

DDB Group Philippines chairman Gil Chua explained that the campaign targets the youth who may have been estranged by the things that separate the old and the young generations. He said that the Christian faith has remained throughout the centuries and only evolved in the way it is practiced and evangelized.

For his part, CBCP Bishop Marcelino Antonio Maralit, chairman of the Episcopal Commission on Social Communications, noted that they want the youth to feel welcome, to believe that the Catholic faith is just as relevant to them as it is to their parents, and to feel that the church is a place where they can feel a sense of community and find purpose.

For comments, email at [email protected]