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.

How Insurance Companies can Thrive in the Age of Globalization

How Insurance Companies can Thrive in the Age of Globalization

October 10, 2017
, , , , Localization

If you’ve been following the latest headlines on the insurance sector, you would have read that insurers are having a hard time in this Age of Globalization. They’re dealing with regulatory problems, geopolitical risks, demographic shifts, and low bond yields.

However, the good news is, they aren’t backing down. Armed with unique products, reduced handling charges, and technology, they are facing head-on the challenges of surviving in a globalized business landscape.

Is your insurance company just as prepared? If it isn’t, it’s time to start taking the necessary steps.

 

Research New Markets

 

A targeted marketing approach can help insurance firms achieve the intended results, especially if they are on a tight budget. The benefits are tremendous for insurance agents who specialize in a new market and for those who can adapt to the consumer behaviors in emerging markets. Of course, the trick lies in targeting the right market.

Take time to identify new markets that are opening up in your respective regions. Research consumer trends, needs and aspirations in these markets before adopting strategies to target specific customer pools. There are plenty of resources that can help you with this, like the local chambers of commerce, trade associations, business news, and financial research papers. 

 

Localize

 

Localisation plays a key role in tapping into new markets. If you can connect with the local customer base, half your work is done. One way to do this is by understanding the local culture.

When AIG entered China with its subsidiary, AIA, in 1992, they tried to leverage on the Chinese’s moral code on responsibility and love to make inroads. However, this failed because the Chinese do not take well to discussions surrounding premature death.

So, do your research. Interpret the local culture. Pay attention to customs and sensitivities that might affect your strategies. Hire localization and translation experts. 

 

Innovate

 

Whether you’re in a developed market or an emerging market, one essential tool for surviving in the globalization era is innovation. Insurers must focus on research and development, agility, and analytical decision making.

Traditional insurance products don’t have a bright future anymore. Therefore, it is necessary to focus on developing risk management services and value-added loss control. Think about re-engineering your products and evaluating the values they seek to fulfil.

 

Leverage On Existing Capabilities

 

Apart from innovating and creating new products, insurers must focus on making the most of their current capabilities, such as their product portfolios, talent, capital, and customer relationships. These capabilities must be introduced to markets that are identical or similar to your current market. You might even need to reshape certain business processes and retrain your talents to create a positive impact on your overseas markets.

As stated earlier, do not fear localization. Expand into newer territories and customer segments to market your current products. Identify new distribution channels to connect with a fresh customer base.

Whether you are a global insurer, an annuities specialist, or a retirement provider, you need to transform in order to thrive, succeed, and grow in the age of globalization and fast-paced technology disruptions. As you plan for your customers’ future, you need to plan for the future of your insurance company too.

8 Tips to Boost Bookings for Your Travel Packages

8 Tips to Boost Bookings for Your Travel Packages

August 10, 2017
, , , , , Globalisation and Internationalisation, Localization

Like all businesses, your travel company too has one objective – to sell products and generate profits. However, achieving this objective is a completely different story for a travel business or a tour agency. There are strategies and tactics that travel companies can deploy in order to boost bookings for their travel packages.

We have listed 8 of the most effective strategies right here. Take a look, apply, and watch your booking rates go up.

 

Register With Travel Aggregator Websites

 

Registering with travel aggregator websites is one way to boost your bookings. These websites – rooms, airfares, tours and experiences aggregators – cater and target millions of customers the world over. Registering with them allows you to connect with a wider customer base and extend your reach. A good example of such a site would be TripAdvisor, which is known to have a customer base consisting of 36 million members. Other tour-related websites can include Expedia, Viator, and GetYourGuide.

 

Go Social

 

Social media platforms have evolved to become effective marketing channels. Around 93% of marketers across the world rely on social media to get the word out about their offerings and to engage with customers and avid travelers. Social media is effective because it’s fast and convenient. It allows for a targeted approach that is cost-effective. Some travel businesses have also ventured into influencer marketing through image-driven social media platforms like Instagram, Facebook, and Townske.

 

Highlight Package Benefits And Unique Experiences

 

Are there specific properties or experiences in your travel packages that set you apart from those of your competitor’s? If so, make sure you highlight these properties and experiences. This adds value to your travel packages and provides the customer with an opportunity to compare and contrast. If your packages are truly more beneficial or can provide a unique experience that appeals to customers, you’ll have bookings rolling in.

 

Offer Mobile Booking

 

Mobile bookings, be it through mobile apps or mobile web browsers, on mobile phones or tablets, are expected to reach 40% of online travel sales in 2017. If you’re a travel business and you’re not mobile ready, you’ll be missing out on this substantial pie. It’s time to go mobile and offer the customer more convenience, faster access, and immersive travel content as mobile phone usage increases.

 

Localize

 

As globalization takes over, it’s becoming a matter of critical importance for businesses to be considerate of local markets. Be it culture or language, a travel business needs to pay attention to local preferences and sensitivities. If you’re catering to customers in foreign markets or attracting inbound tourists, localization is a must. So, make sure you hire mobile app, website, and marketing translation services to help you out. You need to use a multilingual approach to connect with larger customer pools.

 

Digital Marketing

 

Use online services such as Google AdWords, Bing Ads, Facebook Advertising or Instagram Advertising to get the word out about your travel packages. Also, optimize your ads using the right keywords, ad copies or creatives. The advantage with such online advertising tools is that you’ll have options that allow for precise targeting based on metrics such as demographic, interests, and hobbies.

 

Build Partnerships

 

Partners can play a key role in increasing the booking rates for your offerings. By establishing strong connections with B2B partners, you can tap into new opportunities and improve the quality and delivery of your own services.

 

Establish Relationships With Customers

 

Use existing customers to market your offerings by establishing strong relationships. Reward customers with offers and discounts to keep them coming back and to also spread the word about your services. Nothing is more credible and a higher closing ratio that word-of-mouth marketing and referrals.

So, there you have it – 8 tried-and-tested strategies that have worked for travel companies across the globe. But, will they work for you? Well, there’s only one way to find out – try them out! You’ll never know otherwise. If you’re still unsure, remember, these are tried-and-tested methods, which means they’ll most likely work for you too if you can adapt and tweak according to your travel business’ capabilities, resources, and goals.

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.

 

5 Tips for FinTech Companies Looking to Go Global

5 Tips for FinTech Companies Looking to Go Global

July 24, 2017
, , , , Globalisation and Internationalisation

The decision to take your FinTech Companies global is fraught with opportunities and risks. You’ll feel the pressure to make the best choices with regards to a number of issues. Here are 5 major ones to contemplate.

 

Get Comprehensive Insights into the Regulatory Environment of the Country

 

As one of the world’s most highly regulated industries, financial services have to contend with multiple barriers to entry, the most challenging being the different regulations related to tax, labor and employment. Though some countries, such as Switzerland – which recently issued a FinTech regulation with lower regulatory provisions – and London – which currently has the friendliest FinTech regulations – are making it easy for firms to expand globally, other FinTech hubs are yet to follow suit.

 

The counsel of an experienced local adviser is valuable in making informed decisions and avoiding any breaches that could result in monetary loss. An understanding of the implicit cultural best practices of the foreign country is also necessary to ensure that you don’t take any ethical missteps along the way.

 

Brainstorm on the Ideal Localization Model, Aligning it with your Capabilities and Vision

 

Let’s discuss localization in the context of the business structure you want to adopt and how you can plan your online presence.

 

It’s advisable to invest time in assessing the advantages and drawbacks of various business structures that can help you scale up to overseas markets within a targeted time span. In this case, the maxim ‘start small, dream big’ may not apply to all FinTech companies.

 

As far as your website is concerned, it’s essential to offer your overseas audience localized websites accurately translated to their native languages, with the same look and functionality as your original website. This consistency will also be helpful in keeping website development and maintenance costs low.

 

Familiarize Yourself with Local Customs and Cultural Nuances

 

Navigating the local language and customs of a country is one of the biggest challenges faced by FinTech companies on a global expansion drive. Besides becoming familiar with local cultural customs and references, your human resources team may also want to initiate cross-cultural training that enables global teams to interact effectively and harmoniously with one another.

 

Relationship-building needs to be a priority; by encouraging mutual trust and respect, it can help drive productivity and efficiency, which in turn can support your revenue goals in a meaningful way.

 

Access to Qualified Talent

 

Surveys and reports indicate that start-ups in the FinTech sector are unable to meet their need for suitable talent to move full-speed ahead with their operational and strategic goals. Evaluate the demographic characteristics of the local labor force, such as educational and experience levels, to ensure that you don’t have a tough time recruiting the right talent in overseas markets. Your hires should serve as assets to your FinTech company’s expansion and, not end up as liabilities.

 

Pursue Strategic Partnerships

 

A Gallup poll has revealed that people view banks to be the most trusted institutions for protecting their personal data. If you plan to expand to a country that has traditionally regarded banks to be a symbol of stability, you can explore the possibility of partnering with an established bank to build trust for your FinTech company and scale up at a faster rate.