The key motivations to collaborate are: -
"77.2% identified ‘improved ability to enhance customer experience’, 59.5% ‘faster time to market’, 46.8% ‘new digital capabilities,’ and 40.5% ‘competitive advantage over peers.’ Insurtech categories that are being considered for short-to-medium partnerships include data specialists (according to 62% of incumbents), claims management solution providers (51.9%), front-office solution providers (51.9%), and technology specialists (55.7%)"
Gabriel Olano 2nd Oct 2018 Insurance Business
Faster time to market maybe more important than insurers think as McKinsey has proved that Digital drives "Winner Takes All" leading to big winners and losers at top and bottom of a steep power curve. Just 4 to 5 insurers will capture the majority of revenue and profits leaving a long tail of unprofitable insurers in each sector.
These are the uncomfortable facts of digital transformation economics. See "Misunderstanding the economics of digital" and apply the right strategy.
“It’s clear that insurers and insurtechs see collaboration as the key to success in the evolving industry ecosystem, with reimagined customer experience at its heart,” said Anirban Bose, CEO of Capgemini’s Financial Services Strategic Business Unit and member of the group’s executive board. “Finding the right chemistry between collaborators to create a sustainable, agile position in the industry is the key to determining who will be future industry leaders.” Alongside the rise of insurtechs, traditional insurers believe that a new wave of competition is likely to come from a combination of manufacturers and major tech firms. Among incumbents, 81% identified Amazon as the primary source of potential competition, while 59.5% pointed to other tech giants (such as Alibaba) and manufacturers
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