- A 2020 Deloitte China report noted that big data will be vital in ensuring insurance survive for longer post-pandemic and accelerate their transformation towards excellence
- Big data is instrumental in facilitating greater product innovation and pricing accuracy for insurers
- Through its Big Data Insights division (Sapientus), FingerMotion appears well positioned as an ideal partner for insurers looking to implement Deloitte’s proposals
- The China Banking and Insurance Regulatory Commission recently scrapped the 51% cap on foreign ownership, setting the stage for potential growth of the country’s insurance sector
Last year, Deloitte China released a report titled “COVID-19 and China’s Insurance Industry” that explored the measures insurers have taken to deal with the pandemic, the macro impact of COVID-19 on the insurance industry, and, lastly, how insurance companies should accelerate their transformation towards excellence (https://ibn.fm/U2kpn). The report noted that big data, which some insurers were already using as early as February 2020, will be instrumental in the post-pandemic insurance world.
According to Deloitte China, the pandemic posed a significant challenge to the adaptability and resilience of insurance companies and their management teams. This means that these firms need to consider building sustainable management systems to ensure longevity moving forward. The report proposed that insurers should apply big data to facilitate product differentiation and build digital operational capabilities.
With mechanisms already in place, having launched its Big Data Insights division (Sapientus) in July 2020 and subsequently partnered with Pacific Life Re-Insurance, evolving technology company FingerMotion (OTCQX: FNGR) appears poised as an ideal partner for insurers looking to implement Deloitte China’s proposals.
Speaking in an August 25 corporate update, FingerMotion CEO Martin Shen noted that Sapientus stands out because of its ability to integrate publicly available data into proprietary risk matrices with behavioral indicators derived from event-driven or contextual-based information. Through the provision of behavioral analytics, FNGR is looking to supply actionable intelligence and enable efficient service delivery to potential clients within the insurance industry (https://ibn.fm/ljoZh).
Incidentally, the Deloitte report had alluded to this particular application of big data. It recommended that insurers should make full use of data from external and internal sources to “facilitate quantitative models for customer segmentation, and thus more accurate pricing and greater product innovation.”
FingerMotion’s efforts in the insurance sector coincide with a recent move by the China Banking and Insurance Regulatory Commission (“CBIRC”) to scrap the 51% cap on foreign ownership in insurance businesses in a bid to open up the domestic insurance market and expand the sector (https://ibn.fm/WJ936).
In its analysis, Mordor Intelligence quoted the resultant potential increase in the number of insurance companies in China due to CBIRC’s move as one of the factors expected to help the sector grow even further. The market research company projects that China’s life and non-life insurance market will grow at a 6% CAGR from 2020 to 2025 (https://ibn.fm/jCqxM). At the same time, the online insurance market is expected to grow at a 41% CAGR from 2019 through 2024 (https://ibn.fm/9O90d).
FingerMotion is a technology company with core competencies in SMS/MMS services, mobile payment and recharge solutions, and big data insights. It is also targeting the burgeoning rich communication services (“RCS”) segment, with the expectation that RCS will form the company’s fourth division once launched.
For more information, visit the company’s website at www.FingerMotion.com.
NOTE TO INVESTORS: The latest news and updates relating to FNGR are available in the company’s newsroom at https://ibn.fm/FNGR
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