DOF urges insurers to prepare for digital revolution

Published May 7, 2018, 12:00 AM

by manilabulletin_admin

By Chino S. Leyco

The Department of Finance (DOF) said that the insurance industry should be at the forefront and center of the fourth industrial revolution as the sector is seen to benefit most from the technology-driven change now seizing the global economy.

In a statement, Finance Secretary Carlos G. Dominguez III explained yesterday that technological advances have allowed insurance and other financial services to become more efficient, accessible and innovative.

Carlos G. Dominguez III
Carlos G. Dominguez III

Financial technology also led to shorter transaction time and quicker exchange of data between institutions, making new products possible, the finance chief said.

For this reason, Dominguez called on the insurance industry to explore new products and opportunities that would help mitigate risks arising from natural calamities heightened by climate change.

He said that insurers should help communities become more resilient and improve the capacity of countries to recover from disasters.

“The insurance industry should be at the forefront and center of technological changes driving our economies. Insurance is among the most closely regulated as well as the most benefited by technological advances,” Dominguez said.

“The industry ought to explore new products that will not only mitigate risks for corporations but also mitigate risks for communities vulnerable to natural calamities,” he added.

Dominguez said coming up with insurance products that help communities mitigate disaster risks and build resilience “is one area where business opportunities and social concerns converge quite nicely.”

According to Dominguez, the insurance industry should be mindful of the changes happening in the region, where technological advances are “radically altering the terrain for our governments and our enterprises to thrive in.”