Timely review of myth, hype and misunderstanding countered by the significant number of insurers and insurtechs collaborating to innovate and transform to meet the present and future needs of customers.
I was a buyer of technology in the hospitality sector who had to jump the high hurdle of legacy core systems to enjoy the benefits of digitally transforming new technologies. Problem was, and still is, that as you jumped one technology hurdle there was a similar technology hurdle a few hundred metres on; then another and another. You had to jump them all and then, like the grand national, jump them again before crossing the winning line.
And you couldn't replace the jumps- too expensive and with their associated technology stacks and enterprise systems still stood in the balance sheet as significant assets.
How refreshing to find a technology partner that wanted to understand my problems, limitations, budget constraints, resources. Who spent time on this process so that they could test the fit of their solutions so that we could jointly decide if the project were desirable for both of us.
Even more so when, after we jointly felt the fit was good, I was given tangible help to write the business plan (commercial and technical), prepare the CAPEX/OPEX business case and give confidence to other VPs, Managers and staff that this was viable, desirable and in fact a priority to establish competitive advantage.
80% of technology vendors did not reach this high bar; they fell at that hurdle. But I dare say that 80% of other hotel groups were ill-prepared to put the time and resource into the discovery process to ensure successful POCs and production deployment. It is a two-way street needing cooperation and collaboration by bother buyers and suppliers. .
McKinsey believes that only the top quintile of insurers transform and innovate to ensure future profitability and market leadership. I propose that only the top quintile of technology partners do likewise and these two groups are collaborating and cooperating in the way that Kitty Ambers of AVYST describes.
These two groups are the ones transforming insurance- carriers, reinsurers, brokers, MGAs and the myths are propagated by the remaining 80% of each group. Insurers and Insurtechs. They are greater in number so they are often heard more.
But the top quintiles are getting on with the transformation and innovation job. Often quietly but nevertheless dynamically.
Insure: The continued growth and profitability of traditional insurance competitors (whether carriers, service providers, or agents and brokers) depend on their ability to implement workable, efficient processes. Technology solutions will drive that needed change. But agents will always want to have the human touch—not just because they’ve used it for decades but also because it’s effective. Tech: The ability of startups and other InsurTech investors to reach critical mass depends on their ability to cooperatively integrate with business partners both traditional and new. Those who understand that this is a trillion-dollar legacy industry will realize that while change can take place, it might not take place quickly.
https://www.carriermanagement.com/features/2019/10/28/199622.htm
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