With an economic climate that remains very competitive and a population of over six million, the insurance sector in Mauritius is poised to thrive in 2017. It will face several challenges, but will also benefit from new digital technologies. These will require the insurance industry to adapt to the evolving regulatory environment. This will require the insurance industry to recruit talented individuals and adapt its operations to the ever-changing market.
During the review period, the insurance industry grew at a steady rate, supported by sustained demand for motor, property and pension products. The fastest-growing category in Mauritius was the healthcare category, driven by the country’s rising healthcare expenditures and an aging population. This has bolstered the industry’s overall growth. Regulatory changes are expected to further support the industry’s development.
With this market growth, Mauritius is becoming more than a holiday destination.
The country’s diverse economy is gaining recognition as one of the most progressive financial hubs in sub-Saharan Africa. A stable political system and a business-friendly regulatory environment have helped Mauritius become a top destination for investment in Africa. The insurance industry in Mauritius is expected to grow at a CAGR of more than six percent over the next three years.
The insurance market remains fragmented, with several small players catering to the non-life and life insurance sectors. As a result, many market players are seeking partnerships and collaborations to strengthen their positions. Heritage Insurance Holdings Inc., for example, has partnered with Slide, an insurtech P&C carrier, to enhance the latter’s capabilities and reach. This is an important step in strengthening the industry and positioning itself for future growth.
Insurers must increase their investment in disruptive initiatives to stay competitive. Insurers must rebalance their product portfolios and invest in new business models and technology. By combining these three elements, insurers can reap outsized returns and sustain profitable growth. There are significant challenges and opportunities to come, but they need to be positioned for success. And the insurance industry in Mauritius should embrace these challenges and leverage their strengths to stay on top of the competition.
Emerging digital technologies will also affect the insurance industry.
Mobile applications will make insurance more accessible to demographics and provide direct channels of communication. Telematics and big data are both bringing new opportunities for insurers, but they will also pose some risks. As the insurance industry moves toward a more personalized approach to their customers, it is important to remember that these technologies have the potential to hurt the customer experience.
Blockchain-based technology is gaining popularity. It offers insurance companies a number of benefits, including cost savings and increased payment speed. Blockchain is also being used for Know Your Customer procedures, anti-money laundering procedures, and claims processing. Blockchain-based technology is also used for peer-to-peer models in the insurance industry. The blockchain can also be used to track and analyze claims. Moreover, blockchain technology can prevent fraud and protect assets.