Cenfri & Equisoft Research: Low Consumer Trust Holding Back Insurance Distribution in Africa
Part of a new global study, this Africa-focused research identifies critical insurance distribution challenges caused by legacy technology systems, data silos and poor consumer attitudes towards the industry.
CAPE TOWN, South Africa, March 14, 2022 /PRNewswire/ — In a new report commissioned by Equisoft, global research firm Cenfri presents the findings of an executive study aiming to identify the key challenges and opportunities regarding digitalisation of distribution through banks and brokers, across the African insurance industry.
Conducted with 55 industry stakeholders representing life and health insurance underwriters, brokers and banks in 13 countries, the research reveals critical challenges in sales, origination, client engagement and underwriting functions.
Click here to access the full report.
Channel stakeholders don’t agree on critical challenges – making solutions hard to achieve
The study found that the different stakeholders in the channel had different perceptions of what the problems were and why they arose. For example:
- 64% and 67% of insurers and brokers cited low trust, understanding and awareness among consumers as the biggest challenge they face
- But 100% of banks felt the number one issue was low digital capabilities of insurers and/or customers
- Over 80% of distributors mentioned difficulties developing new products/making product changes to address customer needs as a key perceived challenge they thought insurers faced. Yet this was not mentioned as a significant challenge for insurers, with only 27% stating that they have a poor understanding of customers’ needs
While disagreements amongst channel stakeholders remain, it will be difficult for the industry to significantly increase the very low penetration of insurance in the region. Especially when all parties agree that poor digitalisation of insurer systems is a major contributor to the problem.
Legacy technology modernization is needed to address systemic distribution issues
From their different vantage points, both underwriters and distributors have clear opportunities to grow insurance penetration in our market through modernization of core systems and their integration with digital sales and service solutions. Improved data sharing between stakeholders will further contribute to partner efficiency and effectiveness throughout delivery channels, to reduce consumer frustration with legacy processes and build trust,” commented Mia Thom, Director of Insights, Cenfri.
”Less than 10% of adults in Sub-Saharan Africa have private insurance. This research identifies the most critical contributors to that problem and provides the blueprint for overcoming consumer hesitancy and driving client engagement,” said Shingie Maramba, Director, Wealth & Insurance Solutions EMEA, Equisoft. ‘Modernizing legacy technology and increased automation not only accelerate innovation, but drives improved customer experience which is necessary to bridging the distribution gap and building consumer trust in our industry.”
About Cenfri
Cenfri is a global think tank and non-profit enterprise that bridges the gap between insights and impact in the financial sector. Cenfri’s people are driven by a vision of a world where all people live their financial lives optimally to enhance welfare and grow the economy. Its core focus is on generating insights that can inform policymakers, market players and donors who seek to unlock development outcomes through inclusive financial services and the financial sector more broadly.
About Equisoft
Founded in 1994, Equisoft is a global provider of advanced insurance and investment digital solutions. Recognized as a valued partner by over 220 of the world’s leading financial institutions in 16 countries, Equisoft offers a complete ecosystem of solutions, from innovative front-end applications to extensive back-office services and unique data migration expertise. The firm’s flagship products include a SaaS policy administration solution, CRM, financial needs analysis, financial planning, asset allocation, fund and portfolio analysis, quotes and illustrations, electronic application, agency management systems, as well as customer, agent and broker portals. Equisoft is also Oracle’s largest and most experienced partner for the OIPA platform. With its business-driven approach, deep industry knowledge, innovative technology, and expert teams based in Canada, USA, UK, Chile, Colombia, South Africa, India and Australia, Equisoft helps its clients tackle any challenge in this era of digital disruption. For more information about our products and services, please visit www.equisoft.com.
For further information: Jean Sabbagh, Vice-President, Marketing, Equisoft, T +1 888.989.3141, ext. 122, jean.sabbagh@equisoft.com
