A quest for operational efficiency
Insurance processes, which are traditionally complicated, paperwork-based, and time-consuming, can become a make-or-break factor for attracting and retaining customers. Industry surveys show that dissatisfaction with the claim process can lead to customers leaving insurers, with one-third already switching carriers in the last two years while 47% more consider doing so [2]. Beyond impacting customer experience, these inefficiencies also hinder employee productivity and negatively affect business performance. Underwriters, for example, spend approximately 40% of their working hours on non-core activities, potentially resulting in an efficiency loss of up to US$ 160 billion in the next 5 years [3].
Implementing system modernization for streamlining processes and improving operational efficiency, hence, becomes a priority on Singaporean insurers’ agenda. Surveys reveal that nearly 75% of insurance carriers in Singapore plan to replace their core insurance management platforms by the end of 2024 – well above the global average of 41% [4] And these efforts goes beyond isolated updates of individual systems, with more and more insurers are now pursuing large-scale, complete system overhaul with a clear roadmap for future expansion. For example, a 150-year-old insurance group in Asia Pacific, which faced low profitability for three consecutive years due to high operational costs, has implemented FPT’s iSuite to modernize its entire insurance processes and improve performance. The iSuite solution has transformed the client’s entire operations with 5 core systems that support the company’s key functions, from agent management, to underwriting, claim, and customer services, all in one platform.
The digital transformation of core insurance services has significantly enhanced the insurer's operational efficiency, enabling a 70% faster policy issuance cycle, a 75% quicker time-to-market for new product launches, and up to a 30% reduction in operational costs. The solution also elevates the experience for employees, agents, and customers by delivering seamless, 24/7 digital services, resulting in a 20% increase in agent productivity and a 1–2% reduction in customer lapses. Additionally, AI-powered claims processing and advanced analytics enable faster, more accurate decision-making, detecting fraud twice as quickly as traditional methods and cutting fraud-related losses by 15%. Overall, the comprehensive system overhaul driven by FPT’s iSuite has empowered the client to achieve substantial business gains—including an 18% revenue increase within just one year of implementation and a 3–5 percentage point boost in profitability.
Learn more about the success story here.
Aging population and the need for innovative solutions
Singapore is grappling with the challenges of a rapidly aging population. By 2030, it's projected that one in four Singaporeans will be over the age of 65, driving up healthcare costs and insurance claims. This demographic shift is pushing insurers to evolve from a traditional "detect and repair" model to a more proactive "predict and prevent" approach. Rather than solely offering financial protection, insurers are now expected to actively help customers anticipate, avoid, and mitigate health risks. One effective strategy is to encourage healthier lifestyles among policyholders, which can enhance overall well-being and reduce long-term medical needs.
Global insurers are already embracing this shift by leveraging digital technology. For example, John Hancock, a US-based insurance company, rolls out the John Handcock Vitality program to reward their customers for healthy life choices with up to 25% off in premiums. Customers of this program earn points when they engage in healthy activities, such as exercising, having health check-ups, and eating healthily, which can be updated on the John Hancock app and website. The insurer also uses wearables such as Apple watch and Fitbit, to measure its customers’ activities and sleep, and convert them to points for rewards [5].
Beyond promoting lifestyles, global insurers are also stepping forward as a companion that helps their customers detect early and improve age-related health conditions. One example would be Dai-ichi Life - a leading insurance group in Japan, serving one of the world’s largest aging populations. Partnering with Neurotrack, the company offers a cognitive performance test to its customers as part of the "Kenko Daiichi" dementia prevention application. Using smartphone cameras, the test captures the eye movements of the participants as they watch a movie. Such data is then analyzed by AI to identify the brain functions and cognitive abilities [7]. This partnership aims at helping Dai-ichi Life customers regularly assess their memory health, track and detect early any signs of dementia and memory loss, allowing for timely intervention before symptoms become severe [8].
Tech investment on the rise
A survey of Hong Kong and Singaporean insurers reveal that a whopping 86% of respondents believe their companies’ technology budgets to rise in the coming year. It is even higher among insurance companies with international operations (90%) and notably, none anticipate a decrease in tech spending [9]. As insurance companies start to accelerate their digital transformation efforts, it is important that they proceed with cautions. Seeking help from technology partners is indeed inevitable. But given the sensitivity of the highly regulated data that insurance companies process, it is important that they partner with technology vendors that show experience, in-depth industry expertise, and a strong record of compliance with local and global regulation requirements.
