MAPFRE: China, the US and India drive insurance’s potential
Measuring information from 96 markets, including developed and emerging markets, the company’s aim is to discover insurance protection gaps globally. Currently, this gulf is calculated to be approximately US$5.8trn.
MAPFRE’s summarised findings across both non-life and life cover found that the aforementioned countries possess significantly more potential in the medium and long-term. The other countries included in the top 10 were (in order): Russia, Indonesia, Germany, Japan, Brazil, Turkey and Mexico.
Addressing the insurance gap
As we , the insurance gap in emerging or underdeveloped markets is a growing issue and one which new insurtechs hope to address. The problem, at least in countries such as Indonesia, appears to be a low rate of insurance literacy (15.8%), high rates of poverty (43% at the threshold) and little trust financial institutions.
Finding adequate solutions to address these issues across underserved markets will be crucial to addressing the insurance gap overall, a course of action that Manuel Aguilera, MAPFRE Economics General Manager, seems to agree with:
"More than 70% of the current gap is explained by the underinsurance of emerging countries. In this sense, the ageing populations, their income growth and size are factors that determine the widening insurance gap for the Life business in these countries.”
Potential in 2021 and beyond
MAPFRE notes that, with the exception of Russia, the top 10 countries showing the most potential in insurance have not significantly changed between 2019 and 2020.
Despite this, a number of countries in Asia and Africa are demonstrating medium-high (or Tier 2) development potential. These include Nigeria, Egypt, South Korea, Thailand and the Philippines.
Although it is unlikely that 2021 will see a substantial shift in China’s, the US’ and India’s dominance in the top three, the fruitful efforts of in developing markets, which are promoting inclusion, financial democratisation and representation, could see the insurance gap slowly beginning to be bridged.
Tribe and APOLLO announce national insurance campaign
Tribe Property Technologies in partnership with APOLLO insurance has announced a national insurance campaign to digitise insurance for condominium owners, renters, landlords, and developers across Canada. The aim of the campaign is to make insurance access easier and faster for owners while improving the coverage and protection of condominiums and rental buildings.
According to several surveys, nearly half of 4.5mn rented houses in Canada do not have tenant insurance protection, meaning those individuals and their families are put at risk of fire and water damage.
What does the national insurance campaign include?
According to Tribe, the company is working with APOLLO to ensure that this type of insurance is easier to access. It aims to achieve this by introducing a direct connection to APOLLO's insurance technology from both Tribe's strata and condo management platform and rental software to allow for increased education and awareness for owners into insurance risks and options.
It also includes the future ability for notifications for mid-term cancellations, and plans to offer protection from potential strata/condo corporation deductibles, Tribe said.
"We are excited to partner with APOLLO to bring accessibility, visibility, and education around insurance options to our communities and reflect the current lifestyle expectations of condo owners and residents while protecting the value of their biggest assets", said Joseph Nakhla, Chief Executive Officer of Tribe.
Nakhla added: “This agreement with APOLLO is just the first step under our Digital Services & Partnerships revenue pillar. We will continue to layer on services to drive revenue for Tribe, and bring convenience and savings for our users, with the goal of being able to offer a one-stop-shop to our development partners and the over 100,000 residents in Tribe-managed communities”.
APOLLO uses technology as a channel between insurance brokers, carriers, and their mutual clients, offering insurance options from multiple companies on one integrated online platform.
"We like that Tribe is taking a fresh approach to condo living and building smart homes through tech-enabled service, and an integration with their Community Platform supports our goals of making insurance more accessible and supporting the needs of communities”, said Jeff McCann, Chief Executive Officer of Apollo.