5 Impacts of Globalization on Insurance Markets

5 Impacts of Globalization on Insurance Markets

October 10, 2017
, , , , , , Globalisation and Internationalisation, Localization

There’s no stopping the globalization train. It’s already here and it’s going to go further and wider. How has globalization affected the insurance markets and insurance companies all over the world?

 

Competition in the Insurance Markets

 

First and foremost, local insurance companies started facing more widespread competition – not only from within the country, but also from the region and from international conglomerates. Now, this is great news for the customer. After all, they now have the opportunity to choose from a range of products and services that are best suited to their individual requirements.

To sharpen the competitive edge, insurance firms have also tweaked their offerings to make them more tempting. This can range from improving coverage to reducing premiums.

With competition comes greater challenges. Insurance companies now look beyond the local market to acquire customers. In addition to a comprehensive suite of products, they strive to give their brand an international outlook while paying attention to local context and cultural sensitivities.

 

Growth in Opportunities

 

The thing about globalization is that it has caused other industries to expand as well. This has resulted in a plethora of opportunities for insurance companies. Today, a standard insurance firm doesn’t have to limit itself to a limited number of products or services.

With globalization, consumers’ demands change and their needs become more varied. There are also more opportunities for wealth creation and preservation. For instance, more organized labor means more healthcare coverage for employees. Wider globalization means more opportunities for overseas investments, and thus more investment-linked plans.

Globalization has also caused immigration numbers to rise. There are more people within the population who will be looking to sign up for insurance products, and thus more opportunities to do business.

 

New Industry Trends in Insurance

 

Insurance companies are also beginning to experience centralization processes, thanks to partnerships with banks and reinsurance companies, and mergers with smaller or larger competitors.

There’s a growth in the type of insurance services and products as well. For instance, we are seeing insurance products for newer risks such as informational risk, political risk, security risks, and even military risks.

Just as FinTech is changing the banking world, InsurTech is transforming the industry. As the insurance industry starts embracing technological innovation and eCommerce, we’re also looking at more insurance products being sold via the Internet.

 

Increased Consumer Demand for Insurance

 

As more and more foreign insurance companies enter a local insurance market, customers’ awareness tends to grow. Their knowledge of possible insurance and investment plans becomes richer. Needless to say, this creates a demand for more products. Consumers are not willing to make do with what was available anymore. They expect comprehensive coverage plans, low premium rates, and flexible policies.

Some countries are experiencing higher economic output due to globalization and international trade. Economic growth in these countries has boosted affordability, allowing most consumers to go in for high-end insurance and investment-linked plans.

 

Increased Customer Satisfaction

 

With globalization, there’s a renewed focus on customer satisfaction and trust. As customers get savvier and educated about insurance products, the need to gain their trust and build strong relationships becomes imperative to the top line. In the name of competition, insurance firms are putting in extra effort to provide better products and clearer communications driven towards meeting the expectations of both local and international customers.

To borrow the words of Kofi Annan, the Former Secretary General of the United Nations, “It has been said that arguing against globalization is like arguing against the laws of gravity”, globalization has impacted every aspect of our lives and the insurance industry is not exempt from it. The sooner insurance markets embrace the effects of globalization, the better are their chances in ensuring consistent growth in the face of this unstoppable force.

7 Must-Haves in Your FinTech Website

7 Must-Haves in Your FinTech Website

July 24, 2017
, , , , , , , Culture & Intercultural Comms, Globalisation and Internationalisation

In the fiercely competitive FinTech market, your website is a key differentiator, drawing potential customers to your product, ethos and voice. Naturally, it should be appealing and functional, giving visitors the confidence to take the desired call to action – fill up your contact form, call you, or seek live chatting assistance immediately. What can set your website apart from the competition?

 

1. Persuasive Copy

 

Great copy is a sum of many parts. Besides communicating succinctly how your service can solve a challenge or help capitalize on an opportunity, you also need to establish an authentic voice that conveys your brand personality clearly. When replicated across your social media pages, consistent messaging and voice can make you memorable and appear more trustworthy.

 

2. User-Centric Design

 

A website focused on the user considers a number of factors in its design, such as fast loading times, uncluttered webpages, and quick and easy access to information by utilizing an appropriate format and navigational features.

 

3. An Active Blog

 

A blog continuously updated with new content can improve your website’s search engine performance. It can also distinguish you as a thought leader and encourage people to engage with your brand.

 

4. Multilingual Support

 

As you move forward with your internationalization goal, it’ll become necessary to localize your website. 73% of Internet users are not browsing in English. To effectively reach out to online audiences in other countries, get translations right, make it easy to select the language of choice on your homepage, and ensure that your website feels and works as good as it does in its original language.

 

5. An FAQ Page

 

An FAQ page not only gives visitors a quick overview of your product and answers to specific questions, but also allows you to promote some of the other pages on your website. If your FAQ page is long, break it down into sections with relevant queries and answers under each section.

 

6. Add Photos of Your Management Team

 

Build trust and make your brand more human by including photographs of Founder(s) and key Management Executives. Professionally taken photographs of smiling Executives – along with their brief bio – can give visitors yet another reason to connect with your brand.

 

7. Interactive Widget

 

An interactive widget to your landing page can explain your product and pricing in 30 seconds or less. It’s a useful, strategic feature for busy visitors, who after briefly considering your product and quote, can bookmark your website and return at a later time.

 

Localised Advantage for Businesses: Fact or Myth?

April 2, 2016
, , Globalisation and Internationalisation

We are now living in a world of globalisation. Businesses have ceased to develop their commerce inwards and started to embrace the new trend of internationalisation. After all, the more consumers you are able to reach, the higher chances of attracting better sales. On the contrary, does this mean that there is no advantage for localised business anymore? We will find out.

In order to keep up with the changes in the business industry, small businesses and large organisations alike are moving towards creating their own international presence. On the other hand, there are some disadvantages and advantages of having a globalised market. And it will depend on the type of services or products your company are offering. It is, therefore, safe to assume that localised business still have some advantages.

Advantages of Localised Business:

Better Reputation – whether you are a start-up or a recognised business, it is a good strategy to aim for establishing a name locally first. Why? It is a faster approach in gaining clients due to accessibility and convenience.

Facility Growth – this comes in line with a good reputation of the business. It will be easier to expand your facilities since there are people who can testify for your products or services. When there are branches of your company locally, it is a good impression of your business in the market.

Good Communication – communication is essential in any endeavor. In business, when advertising is focused locally, there is a higher chance of having better communication with the members of your company and even with your people.

Amidst the advantages of a localised business, there are also a number of disadvantages it presents. Let us try to identify them as well.

Disadvantages of Localised Business:

Social Problems – centralising a business in a certain region may create industrial slums and un­healthy living conditions. Criminal activities arise and may cause bigger problems for the business.

Un-healthy Competition – when a business establishes another branch on a local region, there is a possibility of rivalry to occur. Competition might be good in the beginning, but it can turn a business upside-down in the long run.

As we can see, localised businesses have its advantages and disadvantages over globalization. In the end, it will be dependent on the company which approach will provide a satisfactory result.