"There is much more of a focus on measurable results, rather than backing intriguing ideas with uncertain outcomes."
Sam J Friedman (Deloitte) in Property Casualty360
Rather than cool ideas or small components of the claims value chain insurers need complete answers that combine:-
- Digital Claims platforms for all the claims value chain
- Orchestration of all participants in settling/closing a claim
- Supply chain integration
- Innovative services
How many insurtechs can deliver that? And if you go to the incumbent suppliers can the insurer afford $millions to hundreds of millions dollars upfront and heavy annual maintenance costs? Not to mention armies of developers and consultants for planning, implementation and deployment!
The market and the industry is at a seismic tipping point following other digitally transformed industries which enjoy the benefit of agile apps with lower subscription pricing.
The sign of a maturing insurtech is to answer yes to:
- Could I deploy a full-production digital claims project customised to our perils in weeks?
- Can this include all channels- agents, the website and/or embedded in app?
- Can the customer use self-service claims FNOL and engagement from any device?
- Switching from one to the other without getting out of sequence?
- Can we orchestrate internal teams like fraud and external suppliers & partners?
- Can we do so without having to replace our core systems until we are ready and can afford to write-off the assets?
- Can we pay-as-you-go at a fixed rate per claim however long and complex?
Say yes to those and you've found both a mature and innovative technology partner.
Attention seems to be shifting from ‘cool’ ideas to practical applications. There is much more of a focus on measurable results, rather than backing intriguing ideas with uncertain outcomes. Financial institutions are seeking fintechs with actual industry expertise, preferring those providing solutions to known problems, rather than startups shopping generic solutions looking for a problem to address within the financial sector. Someone needs to own fintech within a financial institution to avoid duplication of effort, working at cross-purposes, and going off track in terms of strategy and goals. Fintechs are getting savvier about who to target at financial institutions with their pitches and are seeking a clearer path to adoption.