Mexico’s insurance industry is undergoing a period of change and exciting news. Multinationals, national companies, startups, and insurtechs are all taking a closer look at the use of disruptive technologies. How is Mexico preparing for this new wave of innovation?
New technologies aimed at the insurance industry propose innovative solutions that seek to improve processes throughout the value chain, in addition to creating new services and optimizing existing ones.
Large companies with extensive experience, knowledge and expertise benefit from the addition of new ideas from younger companies.
As a result, the industry as a whole is transitioning to a new and modern stage. In short, organizations that are willing to innovate have a higher chance of success.
The insurance industry in Mexico
Large Mexican insurance companies are undergoing profound transformation. The implementation of new technologies and methodologies has led to two major scenarios.
On one hand, traditional companies face the challenge of modernizing and adapting to changing market needs and demands. On the other hand, this situation has enabled the rise of a new generation of insurance companies based on technology in a digital environment.
Currently there are 80 Insurtech companies in Mexico, with 80% of these enterprises founded in the country. These companies create over 1,200 direct jobs. In addition, it is an industry that generates approximately USD 70 million in revenue, according to the «Panorama Insurtech» whitepaper created by Endeavor and the Asociación Insurtech México (AIM).
The industry, face to face with transformation
Insurance companies have a massive opportunity to leverage the wave of technological advances to drive the industry into its 4.0 era. However, starting an innovation process can be challenging.
On one hand, it is a highly regulated industry that requires many agreements in order to make the necessary changes. On the other hand, at a technological level, many organizations have legacy systems in key operations, affecting the implementation of new technologies.
Industries that have modernized in recent years –such as retail, eCommerce or banking– tend to inspire tradicional companies in the insurance industry, assisting them in developing new innovative solutions and services with high added value.
Listening and learning from other industries, and also experimenting, allows leaving behind uncertainty regarding innovation. Thus, it will progress toward an evolution in the industry’s mindset, having an impact on organizations both internally and to the market.
The Latin American Summit of Insurance Innovation
The Bankers’ Club will host the 3rd Latin American Summit on Insurance Innovation on June 8 and 9. This event is organized by El Asegurador, Mexico’s most important journalistic medium in the industry, directed by César Rojas.
This year’s event, called “New Ways of Working”, will feature participation from industry leader companies. In addition, prominent blockchain and crypto-currency experts, and financial sector specialists will be present.
The experts will provide information and experiences regarding how innovation has helped organizations improve, as well as how the insurance industry can use these examples to meet future challenges.
According to Rojas, “one of the main objectives of this event is leadership and the creation of a true culture of digital transformation”.
The Latin American Summit of Insurance Innovation aims to provide a forum for debate, learning and sharing of mistakes and successes that will transform and empower the industry. Furthermore, it will serve as a place for exchange, education, and training for the industry’s new era in Mexico and throughout the region.
In this regard, Oscar Gonzalez Legorreta, Insurance Expert at Multiplica, believes that “one of the most significant challenges that the industry must address is shifting from competition to cooperation. It has been demonstrated in other industries that co-creation, sharing of knowledge, strengths and information is required to achieve real change. One of the issues that this Summit wants to address is collectively transforming that mindset. Let’s share, be open, and collaborate to enrich the experience. The new world is cooperative, not competitive«.
Multiplica’s contribution to the insurance industry
All companies and industries in Latin America are undergoing profound transformations, with technology playing a central role. Innovation comes to renew processes, improve businesses and create new products and services with high value added.
Multiplica has vast experience in methodologies and best practices for listening to users throughout the value chain. In this regard, Multiplica has over twenty years of experience working with major insurance companies in Mexico, including Metlife, Qualitas, Chubb, HDI, Sura, and Plan Seguro.
Therefore, if you want to learn more about how we can assist your company in its digital transformation journey, I invite you to contact me.