September 21, 2017
As the insurance technology space continues to boom, changing the dynamics of the industry and remodeling the traditional composition of the value chain, brokers need to evaluate where technology partners live within their organization’s current and future strategic plans as they move forward.
The industry has long been talking about how to prepare for innovation—citing Uber and Airbnb as prime examples of industries caught off-guard and radically changed—but there isn’t a whole lot of direction on this shifting playing field. How many industry events have you recently attended where the consensus is that the industry needs to alter many of its traditional processes but no viable solutions are identified? This new wave of potential partners presents an opportunity to assess your firm’s pain points, identify opportunities andpotentially support your organizational goals.
But where to begin? Choose to participate, choose to connect. Take advantage of the host of Insurtech conferences happening around the world. Connect with the tech firms there, hear their vision, consider how they enhance or improve a part of the value chain, whether on the front or back end. As the industry increasingly moves to a proactive, risk-prevention and advisory role, how do products and services support this? Understand how venture capital firms and investors are funding and partnering with start-ups. Listen and then offer your expertise. While an increasing number of these start-ups include industry incumbents on their leadership team or as an advisor, expertise from the broker lens is invaluable and in demand. Understand their business model and how it fits, or does not fit, within your own. These firms are permeating the space and attracting funding and talent. It’s essential brokers stay in the mix and make connecting a priority.
We are reminded of the Blockbuster example in this article. In 2008, Blockbuster CEO declared that Redbox and Netflix had no chance of overtaking the market. Shortly thereafter, Blockbuster declared bankruptcy.
How will you prepare for and drive change in an evolving market?
The Council will be attending the Insurtech Connect conference October 2-5 in Las Vegas. Over 3,000 attendees representing different legs of the value chain will be present.
We are excited to represent our broker members as supporters of innovation and opportunity for all. Stay tuned for meeting highlights!
What We’re Reading
Banking Is Only The Beginning: 30 Big Industries Blockchain Could Transform
Outlines 30 industries ripe for transformation via blockchain. Insurance falls at #13.
Insurance Business Will See Biggest Impact From Blockchain, says Deloitte
Blockchain, big data and data analytics will allow insurance companies to reduce the uncertainty of their risk pools. Synchronizing customer data and reducing inefficiencies are potential positive impacts from the use of blockchain and big data.
Insurtech Investments Are Up as Reinsurers Embrace Collaboration: PwC
Amid declining returns in the reinsurance industry, there is a ray of hope. More and more traditional insurance companies are pairing withInsurtech firms, due to their new technology and fresh thinking.
Insurtech Firms Often Help, Not Disrupt, Traditional Reinsurers
A report by JLT Re claims that Insurtech firms are helping re/insurance companies, not ousting them. The data analytics and new technologies that Insurtech firms are harnessing are useful to traditional insurance companies, and the two groups are more often working together, rather than competing.
Insurtech Revolution Will Live Up to the Hype as Companies Invest
Insurtech is here to stay. Traditional industry players have begun to invest in and dedicate whole departments to Insurtech.
New Types of Claims Management ‘Insurtech’ Could Disrupt Auto Body Industry
Insurtech could greatly decrease the lag time in accident reporting and more accurately analyze a crash. This article highlights three new accident management models – telematics detecting a collision and automatically starting the claims process, artificial intelligence using photos to perform estimates, and the ability to report a claim through video chat.