Insurers and Insurtechs at the tipping point of actionable digital transformation says this INSEAD Report. Combine this with Altus Consulting's "General Insurance - Digital Research 2018 - Digital Ranking" which shows insurers that are transforming (and those slipping down the analogue ladder).
The cry to insurers seems to be "INVEST NOW" the typical vendors cry over the ages. But just look at the measurable benefits to be gained in "HOW TECHNOLOGY CAN BOOST INSURERS’ OPERATIONAL EFFICIENCY". It's a tipping point to collapsing costs and delighting customers.
At "The Digital Claims Journey" Event in The Shard, Robin Merttens co-founder and partner of Insurtech London urged insurers "To up their game". Merttens highlighted barriers to success; "lack of investment, hidden and inefficient data.... If you don't meet customer expectations someone else will...that just leaves risk transfer for insurers. He urged insurers to "invest NOW!"
Insurers need to pick the ideal technology partners to address all aspects of the customer experience and journey. For help see "Paris, London, Munich & global hot insurtech startups- what's in it for insurers?"
Not long ago Insurers had only two choices: build it yourself or buy complex, expensive solutions that take ages to deploy. Bit like the days of BI and Analytics when you only had Business Objects, Cognos, Hyperion et al before agile and cost-effective analytics platforms like Sisense, Tableau, Birst, Logi Analytics hit the markets.
Insurers now have agile digital platforms to choose from to gain competitive advantage, anticipate disruptive threats and "Out Amazon"
A tipping point indeed.
Many of the insurance products have become commoditised, driving prices and margins down. For example, 70 percent of people renewing their car insurance policy in the U.K. use price-comparison sites. Burdened by legacy costs and a long overdue automation, traditional insurers have much to gain from working with start-ups in administration and claims management. Collaborative, win-win opportunities in the upstream part of the supply chain are possible for insurers and start-ups alike. For example, Shift Technology, a Paris-based start-up, provides artificial intelligence solutions for insurance fraud detection and automated claims management. Such firms can benefit incumbents even as they disrupt them.