Insurtechs WILL NOT DISRUPT the insurance industry

Insurtechs have long been touted as the future of insurance and as the disruptors of the industry. In essence, insurtech is a about using technology innovations to make the current insurance model more efficient (Investopedia) and should be seen as a part of the industry’s development, but to a lesser degree as disruptors of the industry

Given the nature of insurance, and the possibilities data analytics and technology are offering to the industry, there should be little doubt that the industry is moving towards becoming a technology industry

It is therefore only natural that insurers are looking for ways to reinvent themselves as technology companies, running corporate-wide digital transformation project to ensure adjustment to the changing markets and secure a competitive position in the future

This video demonstrates how insurtechs are important for the development of the industry, but also underlines that insurtechs does not address all challenges faced when creating a future successful insurer – insurtechs are digital instruments to be used in the transformation journey, but it’s still with the incumbent to get the real transformation done

It explores how to use insurtechs to address current incumbent pain points and what to look for before entering a partnership with the insurtechs

It does make good sense for incumbent insurers to look towards insurtechs for partnerships, as a partnership can fast-track the digital development process. Apart from being aware of the organizational changes required to make the partnership work as discussed earlier, it is beneficial to create a gap analysis to evaluate existing competences against competences required to deliver on the insurer’s overall strategic direction and targets

While looking at the elements in the value chain, and apart from identifying the gaps, noting down current pain points can detail the requirements for an insurtech partnership further