The insurance industry and insurtech companies are on a collision course. The result of the collision will not be a disaster, it will bring an updated version of what we expect from insurance and a new way consumers will access information, pricing and claims.
That’s what insurance consultant Mark Breading writes on Insurancethoughtleadership.com. Breading offers five areas where the disruption will have its biggest impact as insurance companies look to partner with insurtech firms:
- Distribution: Distribution is a prime area for partnering, and 30 percent of all startups are connected with this area. These companies are born digital; often create an innovative customer experience; and leverage mobile, artificial intelligence, gamification and other technologies.
- Risk: The rapidly expanding availability of data on perils, real-time and otherwise, offers possibilities for improving risk selection and pricing. New predictive models and scores; more location-based data with greater levels of precision; and new real-time behavioral data all create differentiating opportunities for insurers.
- Product: Many insurtech firms are creating innovative ideas for micro-insurance, usage-based insurance, behavior-based insurance and parametric insurance.
- Customer service: New and emerging technologies are emerging here, with technology like drones, blockchain, mobile payments, AI, wearables and other tech being created. Many of the insurtech firms have innovative offerings in very specific areas and look for proof-of-concept and piloting opportunities with insurers.
- Operations: “Many tech companies — both incumbent and new firms — offer solutions to take operational efficiency to the next level,” Breading writes. “Robotic process automation and other AI techs lead the way, but other technologies offer improvements, as well. Video streaming and smart glasses for claims can improve claim operations. Again, the companies that are creating these new solutions are eager to partner with insurers.”