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Digital Acceleration Can Also Mean Better Protection

The impact of technological transformation on Colombia's insurance industry.

In recent years, technology has had a significant impact on the insurance industry. At first, it seem to have been left behind when compared to other business sectors, but thanks to its ability to adapt, projections for 2023 are optimistic, according to the research on economy conducted by Swiss Re Institute*. This research noted that the global insurance market showed signs of recovery in 2021, with premiums exhibiting a real growth rate of 3.4%.

The Colombian market continued to perform well, ranking third among Latin American countries with the highest growth rate at 10.2%. In terms of premium volume, Colombia ranked 39th out of 88 countries worldwide. This represents a subtle improvement from 40th place in 2020.

This improvement is partly since the insurance industry has not only focused its efforts on improving its products, but also on integrating technology to provide its customers with a better experience and value that adapts as society and technology advance. An example of this are the new sales models that include partial insurance coverage or policies that are tailored to the new demands in the market. The momentum gained in the industry by the startups known as “insurtech companies” has also led to a transformation in traditional companies after seeing their offering become outdated and lag behind these startups, which are more agile and closer to customers and their needs. 

According to analyses in the aforementioned study, “while this digital acceleration brings positive effects, it also results in the emergence of security breaches that have not gone unnoticed by cybercriminals. This is why 19.5% of the leading experts consulted consider that cybersecurity breaches will be a risk over the next two years (2023-2024). Therefore, insurance companies are expanding their portfolios with new products and services aimed at protecting their customers from these attacks.” **

This is where new technologies play a major role and finding technology partners to address these needs is key. Blockchain, digital onboarding processes with two-factor authentication, big data, and machine learning are all becoming part of the everyday language in modern-day companies, as these are technologies that benefit companies and their customers by allowing them to better understand customers, anticipate risks, and adapt the insurance policy models to the insured’s behavior.

Evertec is a company with a long track record in the market, offering solutions and services that help insurers focus their efforts on their core line of business: serving their customers better and personalizing their plans and policies, while Evertec takes care of streamlining payment processes, implementing and managing security protocols, and big data to improve response times and customer satisfaction.

The year 2023 will certainly bring great challenges, but it will also provide great opportunities for the industry to transform itself and accelerate the digitization of its processes in partnership with Evertec.

By Adriana Rojas, Business Manager at Evertec

Por: Adriana Rojas,<br> Gerente comercial, Evertec
Por: Adriana Rojas,
Gerente comercial, Evertec

Administrador de empresas, cuenta con más de 15 años en empresas financieras y tecnológicas donde ha manejado medios de pagos y canales electrónicos.

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