Another example of how digital insurance platforms are permeating the IT infrastructures of incumbent insurers. In this case Slice with "On-Demand Insurance".
In parallel digital claims platforms covering not just Home and Auto but Pets, Travel, Vehicle Warranty, Commercial and Speciality like 360Siteview have moved beyond proof of value to industry-strength deployment with over 3.6 million clains having been processed in an Amazon quality UX and journey.
If there were only one or two platform vendors it would indicate an early adopter market. When millions of claims are going through one platformand the likes of RightIndem and Snapsheet are being deployed you know this is the early majority phase of the technology adoption life cycle.
This means that those insurers that are not deeply engaged with technology partners may suffer being one of the late majority. This has worrying implications as McKinsey has evidential research showing that just 4/5 of insurers in each segment will share the majority of profits. The long tail of late majority insurers will share a very thin gruel of marginal profitability and losses. See Exhibit 4 in "Time for insurance companies to face digital reality".
An insightful article by Patrick Kelahan highlights the danger to many insurers who starts with :
"Within the orb of InsurTech press, social media, and conferences one would think innovation and migration to adoption of the most clever of tech and innovative practices is de rigueur within insurance- if one a believes the continuous stream of congratulations, curated lists of players, descriptions of new processes, investments and change that are seen each day. No need to proselytize when the audience is already converted.
But has the message been adequately delivered to the billions of insurance customers, millions of insurance industry staff, and $5 Tn of insurance business conducted? I’m unconvinced based on recent news…"
Well worth reading Daily Fintechand making sure you are an early majority innovator and don't slip into late majority.
This new partnership brings on-demand insurance to the fast growing Asia Pacific region of Asia, the first of its kind. SOMPO will license the Slice Insurance Cloud Services (ICS) platform to quickly deploy and test new digital insurance products. Compared to other, more traditional solutions, the Slice ICS platform allows insurers, like SOMPO, to leverage the flexibility, scalability, and security of ICS through a high-value subscription model.