After the years of early adopters and fitful digital transformation progress is this another sign that insurtechs are crossing the chasm, establishing bridgeheads and entering the "Early Majority" stage.
Typically it takes three years to move from isolated POCs to joined up transformation across multiple products. 360Globalnet has experienced that as it renews long term contracts with major insurers.
This is the start of the slope that leads to rapid expansion- "The Bowling Alley" in Geoffrey Moore's crossing the chasm model.
Most insurtechs will have fallen into the chasm; those that have crossed into long-term viability and growth should already show scale, significant revenues and route to profitability.
I was taken by a quote by Steven Applebaum in a recent article posing the question as to whether change amongst insurers will move from gradual to sudden.
The phrase “gradually, then suddenly” comes from Ernest Hemingway’s 1926 novel “The Sun Also Rises,” when Mike Campbell is asked how he went bankrupt. “Two ways,” he answers. “Gradually, then suddenly.” These simple but profound words also apply to changes in the insurance claims IT industry over the last few decades, and to how today’s insurance industry leaders need to be thinking and acting to avoid the “suddenly” outcome."
Lesson is to chose technology partners that can enable sudden change, deliver real iterative development and cope with longer term deployment of technologies like MDM and AI as an integral part of enterprise-wide technology infrastructure
Prudential Financial Inc is set to buy online insurance startup Assurance IQ Inc for $2.35 billion, the latest in a series of moves by traditional insurers to up investment in technology and data crunching by buying Silicon Valley startups. Shares of Prudential, which have struggled in the year since Charles Lowrey took over as chief executive officer, rose 3% in morning trade on the news of the deal. They fell 21% in August after poorer-than-expected quarterly results. Labelled “insuretech”, Assurance and peers such as California-based Health IQ and Clover Health have drawn eyes over the past year with disruptive models that use data crunching and artificial intelligence to boost revenue and cut costs.