munich re’s african insurance survey results the oesai ... · munich re’s african insurance...

Munich Re’s African Insurance Survey ResultsThe OESAI Extension

August 2017Greg Becker – Business Development Actuary

Thank you for your responses…

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Munich Re's Life Insurance Survey 2015, Survey ResultsMunich Re's Life Insurance Survey 2016 - Ghana, Survey ResultsMunich Re's Life Insurance Survey 2016 – East Africa, Survey ResultsMunich Re's Life Insurance Survey 2016 – Uganda, Mauritius and Mozambique, Survey ResultsMunich Re's Life Insurance Survey 2017 – Namibia Survey Results

Results…

9/5/20174

The respondents rate different parts of Africa as having different levels of innovation

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Munich Re's Life Insurance Survey 2015, Survey ResultsMunich Re's Life Insurance Survey 2016 - Ghana, Survey ResultsMunich Re's Life Insurance Survey 2016 – East Africa, Survey ResultsMunich Re's Life Insurance Survey 2016 – Uganda, Mauritius and Mozambique, Survey ResultsMunich Re's Life Insurance Survey 2017 – Namibia Survey ResultsOESAI and Munich Re's Life Insurance Survey 2017 – Survey Results

LIFE

Non-life

What is the insurance industry’s biggest challenge?

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Customer respect and meeting customer needs and lowering costs!

Munich Re's Life Insurance Survey 2015, Survey ResultsMunich Re's Life Insurance Survey 2016 - Ghana, Survey ResultsMunich Re's Life Insurance Survey 2016 – East Africa, Survey ResultsMunich Re's Life Insurance Survey 2016 – Uganda, Mauritius and Mozambique, Survey ResultsMunich Re's Life Insurance Survey 2017 – Namibia Survey ResultsOESAI and Munich Re's Life Insurance Survey 2017 – Survey Results

What is your employers biggest challenge?

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Munich Re's Life Insurance Survey 2015, Survey ResultsMunich Re's Life Insurance Survey 2016 - Ghana, Survey ResultsMunich Re's Life Insurance Survey 2016 – East Africa, Survey ResultsMunich Re's Life Insurance Survey 2016 – Uganda, Mauritius and Mozambique, Survey ResultsMunich Re's Life Insurance Survey 2017 – Namibia Survey ResultsOESAI and Munich Re's Life Insurance Survey 2017 – Survey Results

Special cases like Namibia……Everyone is focusing on regulation…

8Munich Re's Life Insurance Survey 2017 – Namibia Survey Results

Regulators should… (Option a, option b, both – almost everyone chose both)

9OESAI and Munich Re's Life Insurance Survey 2017 – Survey Results

…ensure that insurance companies are sufficiently capitalised (incl. hold

enough reserves) so that policyholders never lose out in the

event that an insurer goes insolvent

…ensure that regulations encourage innovation and growth, and lead to an increase in the insured population (eg due to improved financial literacy and

encouraging customer centric products)

POLICYHOLDER PROTECTION ENCOURAGE GROWTH

DO BOTH

What should the regulators do?

10Munich Re's Life Insurance Survey 2017 – Namibia Survey Results

Setting sensible capital adequacy

regulations54%

Measures to improve market dynamics by improving the ability

of consumers to evaluate competing offerings (eg

proposing a standard set of Critical Illness definitions or

industry standard policy wording)24%

Developing strategies to

improve financial literacy levels,

and in particular a wider

understanding of the positive impact of insurance products

68%

Policing the industry and help keep poor providers out of the market before they have the chance to

damage the industry's reputation

36%

Different regions see the future of distribution differently

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Munich Re's Life Insurance Survey 2015, Survey ResultsMunich Re's Life Insurance Survey 2016 - Ghana, Survey ResultsMunich Re's Life Insurance Survey 2016 – East Africa, Survey ResultsMunich Re's Life Insurance Survey 2016 – Uganda, Mauritius and Mozambique, Survey ResultsMunich Re's Life Insurance Survey 2017 – Namibia Survey ResultsOESAI and Munich Re's Life Insurance Survey 2017 – Survey Results

Different regions see the future of distribution differently

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Munich Re's Life Insurance Survey 2015, Survey ResultsMunich Re's Life Insurance Survey 2016 - Ghana, Survey ResultsMunich Re's Life Insurance Survey 2016 – East Africa, Survey ResultsMunich Re's Life Insurance Survey 2016 – Uganda, Mauritius and Mozambique, Survey ResultsMunich Re's Life Insurance Survey 2017 – Namibia Survey ResultsOESAI and Munich Re's Life Insurance Survey 2017 – Survey Results

Different regions see the future of distribution differently

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Munich Re's Life Insurance Survey 2015, Survey ResultsMunich Re's Life Insurance Survey 2016 - Ghana, Survey ResultsMunich Re's Life Insurance Survey 2016 – East Africa, Survey ResultsMunich Re's Life Insurance Survey 2016 – Uganda, Mauritius and Mozambique, Survey ResultsMunich Re's Life Insurance Survey 2017 – Namibia Survey ResultsOESAI and Munich Re's Life Insurance Survey 2017 – Survey Results

What the future might just look like…

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Is insurance penetration going to increase?

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South Africa

Munich Re's Life Insurance Survey 2015, Survey ResultsMunich Re's Life Insurance Survey 2016 – Uganda, Mauritius and Mozambique Survey ResultsMunich Re's Life Insurance Survey 2017, Namibia Survey ResultsOESAI and Munich Re's Life Insurance Survey 2017 – Survey Results

Insurance penetration is very low in AfricaMarginal growth off a low base is not much of

a future

Fighting over the pie or growing the pie?

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Munich Re's Life Insurance Survey 2017, Namibia Survey ResultsMunich Re's Life Insurance Survey 2016 – Uganda, Mauritius and Mozambique, Survey ResultsMunich Re's Life Insurance Survey 2015, Survey ResultsOESAI and Munich Re's Life Insurance Survey 2017 – Survey Results

If we are going to grow the market, we may have to consider all distribution channels & be segment specific

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Analysis presented at the MunichRe Foundation’s 2016 MicroInsurance Event

What role will mobile phones play in our industry’s future?

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Mobile phones have the potential to disrupt the entire insurance cycle

OESAI and Munich Re's Life Insurance Survey 2017 – Survey Results

What about micro-insurance?

19Munich Re's Life Insurance Survey 2017 – Namibia Survey Results

Microinsurance requires simple products with

simple/no underwriting

50% There is no money in microinsurance – it is more like charity than real business 8%

Microinsurance is a great way to

increase market penetration and tap underserved

populations62%

Microinsurance requires low cost

distribution channels, and is

well suited to digital and mobile

distribution62%

Reminds me of this….

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§ Improved personal identification

§ Economic growth

§ Increased incomes

§ Increased wealth

§ Increased insurable assets

§ Improved education

§ Improved financial education

§ Improved healthcare

§ Improved digital access

§ Regulators seeing their role as covering both policyholder protection and industry growth

§ Industry initiatives to grow financial literacy

§ Industry initiatives and bold companies who aim to standardize policy wording and simplify products

§ Innovative companies and startups who use non-traditional distribution channels and partners

§ Digital… access, education, underwriting, administration…

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We will need external enablers in combination with industry initiatives

External enablers Industry initiatives

Questions and Comments

Thank you for your attention

Contact: Greg Beckergrbecker@munichre.com