In the past few years, insuretech upended the insurance industry prompting traditional carriers to reevaluate how they create products and deliver services to their customers. Insuretechs are most definitely driving change for traditional insurers by extending their capabilities, making them more agile, and extending their business capabilities.
Supported by a tech-savvy customer base, who expect their needs to be met with speed, efficiency, and accuracy, insuretechs have been a primary disrupter in the industry by leveraging technology innovations in niche areas of insurance. With an obvious ability to deliver convenience and cost-savings, venture capitalists have been quick to invest, and traditional carriers have been eager to benefit from them.
“Insuretech has evolved from its origins in the early part of the last decade (as an offshoot of the FinTech movement) and quickly gained momentum over the last few years to experience a strong close in 2019,” explained Mark Breading for Strategy Meets Action (SMA). “Along the way, there were rumors of its demise – maybe it was a wish made by those hoping insuretech would just go away and stop creating new competition or driving the need to innovate.” But that didn’t happen and insuretechs continue to prevail, not just as a result of increased funding but courtesy of how traditional insurers are reaping benefits.
According to a recent webinar, sponsored by industry leader, Cognizant, insuretechs bring myriad benefits. These benefits include the insuretech movement’s positive impact on legacy carriers. The partnership between insuretechs and traditional insurers is one that mixes the best of both worlds combining technical expertise, digital and advanced analytics capabilities, innovative modular solutions, agile development and quick decision making with traditional insurers’ industry knowledge, wide customer base, capital investment power, and established PMO. Working in tandem to solve problems and provide solutions, both insuretechs and traditional insurers complement one another helping to fulfill the mission of the industry, meeting prospect and customer needs.
In addition to driving innovation that betters the industry, insuretechs also help traditional carriers to deliver services during times of disruption. COVID-19 accelerated the need for digitization and modernization within the insurance industry and forced traditional insurers to reevaluate many of their processes. With the pandemic prompting the current work-from-home revolution, insuretechs – like those with niche focuses including claims handling – helped carriers to automate processes to accommodate now remote employees and ensure business continuity.
“If you can find a partner that’s solving a very pressing need that you have and you can allow them to move at their pace, as a carrier you can achieve meaningful wins in a short amount of time,” explained Ted Stocky, chief growth officer of Brown & Brown Insurance, during the webinar.
The insuretech movement continues to prevail via mutually beneficial partnerships with traditional carriers and helps them to continue delivering services amid disruption. With insuretechs a central part of the industry, convenience and cost savings are guaranteed and, most importantly, prospect and customer needs are met.
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