There is a “great opportunity” in commercial insurance for the use and development of fintech, an industry executive has said.
Jon-Paul Jones, president and CEO of AIG Indonesia as well as head of the firm’s agency business in Asia Pacific, said that opportunities to use and develop fintech exist outside of personal lines.
“There is much excitement around fintech and it will be more around commercial, and not all around consumers,” Jones told Insurance Business.
“I think there has got to be a great opportunity in the commercial space.”
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Personal lines and direct insurers are currently spearheading the drive towards fintech in the Asia Pacific region. With firms such as JD Finance looking to further leverage their fintech position in the personal market, companies that focus on commercial could be in for a windfall.
Jones noted that the insurance industry will be interesting to watch over the coming years as it comes to terms with its digital future. Bringing both challenges and opportunities, Jones said he hopes that the industry also sees “real innovation,” too.
For businesses that are able to fully embrace fintech, Jones noted that they will be given “a massive opportunity to leapfrog,” and grow their businesses.
Disintermediation is often spoken about as one of the key impacts fintech could have on the insurance industry. Jones said that disintermediation would represent a “fundamental shift in the way insurance has worked, forever.”
What could this mean for brokers? Jones stressed that the entire industry needs to remain alert to fintech but changes will be needed to help solidify incumbents as both insurers and intermediaries face similar challenges.
“They have to look at the value proposition that they are offering and that has got to be something different and more innovative than what is in place today.” Jones continued.
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