The difference in how insurtechs and insurance carriers view future priorities is fascinating. Might explain why there is so little meeting of minds; too often both sides leave a meeting, trial or POC muttering "They just do not understand".
EG:- Carriers rate the internal challenge of "Data and Analytics" as Challenge No. 4 but most insurtechs do not even have that on their radar.
"The industry’s inability to easily partner could be a major stumbling block for industry innovation. If it takes innovators too long and too much funding to work through the procurement process, then they will lose momentum.
“Startups are often 3-4 people prepared to build and learn and fail and build and learn and fail,” said Brian. “Large insurance companies aren’t built that way. They aren’t able to understand one another. As an example, look at the info security questionnaire at some insurers, with 200 questions. A startup will fail that with flying colors. They are trying to innovate, not be prepared for enterprise opportunities. The incumbent companies that have been successful [in partnering] have created a point position within the organization that will hold the hand of the startup through the procurement process."
"This is the Mars vs. Venus relationship,” said Mike Connor, CEO, Co-Founder, Silicon Valley Insurance Accelerator (SVIA) “Unless you have sold into an enterprise, you don’t understand how complex it is. On the insurance company side, in many cases, they are just forming their decision-making process to work in this world of innovation.”
“We counsel both InsurTech startups and insurance carriers — ‘When you come to the table, please be as excruciatingly honest as possible in where you are in the decision-making cycle, who is involved, and what your expectations of this relationship are. If those things don’t match up, please let each other know immediately.’” Brian Hemesath, Managing Director, Global Insurance Accelerator (GIA)
Worth reading the full article, bridging the gap in understanding and finding common ground for strategy and innovation. Talk with an insurtech that has this practical relationship with insurance carriers and has now processed over 2.5 million claims thought its digital claims platform.
The Majesco survey results for this category were insightful for a number of reasons. Looking at figure 1 (below) it is easy to see the differences in technology priorities. Solution providers are looking at the technologies that will foster platform solutions and the insurers seem to be focused on those technologies that will simply digitize what they are already doing. Insurers/MGAs are looking more at targeted solutions, whereas the solution providers are taking a broader and more strategic approach.