There are full stack insurtechs which must survive and grow through these turbulent Covid-19 impacted times.
The other side of equation are the Digital Insurance Technology Platforms that can digitally accelerate incumbent carriers, reinsurers, brokers and MGAs.
Carriers have generally coped with change to work-from-home MO though some are creaking at the seams.Many are challenged by tactical problems
e.g. Travel and Event Cancellation and Curtailments.
Others by not being able to carry out site surveys and inspections with isolation in force. Insurers seek solutions such as digitally assisted visit experiences that replace face-to-face interviews with digital inspections.
Digital accelerators like 360Globalnet are delivering these solutions fast as befits agile solutions. Insurers need more though as Covid-19 changes their plans and budgets. WFH customers purchasing even more products online will expect insurers to be at the forefront of customer experience (CX) accros the whole value chain. This at a point when insurers are putting hardware and device and discretionary spending on hold!
Hot-off-the press report from SONR stated the #1 challenge for insurers is being able to achieve this digital acceleration
- Everyone is rethinking strategy
- Focus is on 0-3 year near-term
- Greatest challenge is how to accelerate digitisation.
Well worth a read.
Right now insurers need to "sweat available assets" and cope with hiring freezes. Increase reserves as business interruption claims with political interference loom on he short-term horizon.
Digital acceleration must be achieved without having to change, upgrade or replace core systems. Capex is out.
Yet insurers need technology partners that enable them to tackle phase two- the post covid-19 period.
Phase two projects must deliver operational excellence which means harder metrics and proven results. All without more Capex remember.
Digital Claims Management must be achievable notwithstanding the limitations of current systems as insurers really do not want to change these. "Sweat the assets" remember!
So viable digital business technology platforms must be practical "wrappers" around these core systems. There is a shortage of COBOL programmers now in high demand to maintain and extend the life of many legacy systems. The last thing CIOs need is demand to integrate new platforms unless a well documented API architecture means no changes to core systems that compromise compliance, security and ongoing performance.
Insurtechs in this new era need to be able to prove in demos and fast POCs that they can deliver this stage two business performance improvement. All without Capex and demonstrating that they can reduce Opex.
That is a tall order for many and one bridge too far.
There are scaled-up insurtechs ready with proven digital acceleration platforms, good cash-flow and resilience to scale globally with insurers. Digital claims management platform technology partners like 360Globalnet.
These are the partners with a track record and proven business performance outcomes that are bridging the gap between tactical and strategic digital acceleration projects.
”Over the next ten years, the millennial generation in Europe will buy almost one billion new insurance policies. That’s a huge potential. Now, insurtechs even have the opportunity to change customer behaviour for good. It is up to them to convince older generations of the benefits of digital insurance.” This, he said, is because insurtechs have already succeeded in attracting young people as either customers or employees, and millennials prefer solutions that aren’t paper-based, where they can see and change their coverage instantly. Despite this, Wiens said insurtechs still only have a tiny fraction of the market share. For now.
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