Accelerating insurance innovation in the age of InsurTech
Insurers of the future will need to evolve and transform
Insurance companies value modernizing systems, improving policyholder experience, and developing new products, platforms, and services. However, many insurers focus more on enhancing legacy systems than true innovation. This report explores what’s keeping insurers from innovating and how to view InsurTechs as innovation partners, not vendors to set the stage in becoming an insurer of the future.
Key findings: Innovation in the insurance industry
Explore the top findings about insurance innovation in today’s market:
- Most insurers remain focused on enhancing legacy systems, products, and business models, while neglecting to devote enough resources to more disruptive innovations that might differentiate them in an increasingly customer-centric economy.
- To help accelerate insurance innovation, insurers—which account for only one in four dollars invested in the maturing InsurTech market this year—should start dealing with startups more as an ecosystem of co-developers and partners, rather than just another vendor with a point solution.
- Insurers face increasing scrutiny by rating agencies that are now examining how effectively they initiate and manage innovation and, more importantly, how they demonstrate a measurable impact.
- Improved technology alone can’t foster sustainable innovation unless accompanied by fundamental changes in insurance company strategy and operating models.
- Carriers will likely need to expand upon core innovations to jump-start adjacent and transformational efforts, which could be facilitated by a dedicated team created to pursue new business models and seek alternate revenue streams in parallel with current system improvements.
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