"Apprehensive over inferior mobile and online platforms, inefficient processes and frightful visions of becoming irrelevant, both tech and non-tech organizations are looking to leapfrog the innovation curve by acquiring proficiency in A.I., robotics, predictive analytics, machine learning, blockchain, natural language processing, image recognition software and the Internet of Things (IoT)." Russ Banham Chief Executive Network 4th Feb 2019
Banham goes on to describe three M&A ways to acquire innovative technology.
- A license to license
- Invest, Learn and Buy (maybe)
- Locking up a joint venture
There is another option; some platform technology providers really do allow the business to
- Configure optimal and unique customer journeys;
- Deliver optimal UI/UX without coding or recourse to the vendor;
- Orchestrate all supply chain participants to deliver customer delight;
- Thereby creating disruptive IPR
360Globalnet, Snapsheet and RightIndem come to mind in the areas of digital claims. The end result is the insurer has the IPR without the commitment to invest or buy. These options could be exploited later. The advantage is that you gain a complete solution rather than a tool or micro application. And they are deployable now and scalable.
Insurers would do well to add this option to leapfrog the innovation curve and outrun the competition.
Long disparaged as technology laggards, insurance companies are transforming operations from top to bottom using a variety of innovative digital and data technologies. In cases where these tools are not built in-house, they’re obtained from the more than 1,500 insurance technology startups that have sprouted like mushrooms over the past 10 years. These nimble InsurTech startups seek to either compete against traditional insurers, sell to them, or be acquired by them. For insurers that opt to buy a startup, one way to lessen the risk of a failed deal is to invest in the company first, by way of forging a close partnership.
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