Mike LaRocco, president and CEO of State Auto, said during a session at Insuretech Connect in Las Vegas that insurtechs often cannot see the industry from the insurers’ point of view.
This suggests that there are still to many solutions looking for problems to solve and that too many insurtechs are product focussed rather than customer focussed.
"LaRocco said the winners will be the insurtechs out there who can do things like lower the loss ratio or improve the customer experience and find the right partners who know how to match with them and integrate that into their systems effectively."
The Insurer 25th Sep 2019
LaRocco also says that insurers need to look inwards at themselves and do not understand how they should be leveraging technology. He goes on to say:
"...cultures at insurers need to change to embrace insurtech properly. He said the cultures at the vast majority of companies are very bureaucratic, paternalistic and traditional. “The actual cultures of the companies you are dealing with really aren’t built for innovation because they have been so poorly designed,” he said."
He continued: “The problem that you are seeing today across the industry is companies all want to say they are involved in insurtech, they all want to drop buzzwords around digital or AI or something else but in reality they haven’t built the infrastructures inside those organisations to truly leverage the change that is coming.”
Look for technology partners that are focussed on you the carrier, re-insurer and broker/MGA. Partners that can prove scalability and a solution that is end-to-end today and not at some time in the future.
And look for a "No-Code" solution which means that you, the insurer, can configure, iterate and innovate without being dependent on the vendors consultants and developers. In fact your own business analysts and trained adjusters/claims handlers must be able to type in plain English, Spanish, French, Arabic, Italian and so on from the desktop/laptop in the business to continuously improve:
- Customer journeys
- Customer UX and satisfaction
- Claims Team UX and motivation
- Supply chain management and choreography
That's when agile means agile.
LaRocco said that insurtechs trying to disrupt the industry from the outside have to find opportunities where they are truly bringing value to carriers. “There are a few folks out there that are trying to transform the industry because they are creating new and different types of carriers and those things simply aren’t working,” he said. “And then you have got people that are trying to add value somewhere along the process, either through the claims system, through billing, through service or communications, and that is where the real opportunity for value is.”