As we embark on a new year, let’s hope that the green shoots that appeared in 2013 take root and provide the growth that our industry sorely needs – I wish you good health and prosperity in 2014!
Small-ticket insurance is one of the biggest opportunities currently available for insurers, in a world where growth is hard to come by. In Europe in 2012, when GDP was flat at best, small-ticket insurance premiums grew strongly to between €9.5 and €11.5 billion. What’s more, they’re projected to continue growing at a CAGR of over 6 percent through to 2017.
Small-ticket-insurance insurance in emerging markets – or microinsurance, as it’s called in those parts – is expected to expand even more rapidly.
That’s a much more exciting prospect than most other lines of business can offer.
At Accenture, we believe most insurers are neglecting the potential of small-ticket insurance, or are overlooking a number of measures that can make it a lot more efficient, and more compelling for prospective customers. We recently undertook a study of the market in Europe, Africa and Latin America, and in this series of weekly blog posts I will discuss some of the findings. I’ll also share our conclusions about the steps carriers can take to succeed in this market.
Perhaps the most unexpected of these findings is that although the types of insurance sold in mature and emerging markets appear to be very different, they are in fact sufficiently similar to make a strong case for insurers to integrate them, manage them on a single shared platform, and exploit the potential for reverse innovation.
I hope you’ll join me as I build this argument, and demonstrate why I believe small-ticket insurance is a bright light in what is currently a fairly gloomy marketplace. In the meantime, if you would like to read our full report, you can download it here.
Next week I’ll chat about the trends that are driving the demand for small-ticket insurance – they’re not all that obvious!