Simpler, cheaper, faster: how artificial intelligence is lifting SA’s insurance sector
New-age insurers offer simpler, cheaper and more personalised insurance
New disruptors are opening shop in response to decades of longing for simpler, cheaper and more personalised insurance, setting up traditional sector players for a rude awakening. McKinsey and Company’s Insurance 2030 report warns that in some market segments “razor-thin” margins will become the norm as competition intensifies amid a new wave of mass-market instantly issued and usage-based insurance products. In SA, personal lines of short-term insurance seem to be becoming the first casualty of the fourth industrial revolution’s shake-up. On Tuesday, artificial intelligence-driven car insurer Naked Insurance announced that it will be adding more products to its portfolio as consumer demand in its first six months of trading surpassed expectations. The insurer, backed by Hollard and its holding company, Yellowwoods, said it will expand to household cover in the first half of next year, bringing it a few steps closer to becoming a fully-fledged short-term insurer. Naked Insurance was...
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