In the past, traditional insurance companies often viewed insurtech startups as threats and disruptive competitors. However, a recent Digital Insurance article reveals that this narrative has shifted, with InsureTech startups now increasingly seen as collaborative partners that can help insurers offer cutting-edge services and enter new markets.
The article cites this finding from the 2018 InsurTech Trends Report by PwC, a professional services network, and Startupbootcamp, a global startup incubator. The report states, “Insurers are now focused on the promise of innovation from beyond the confines of their own sector… the emerging picture is now of an ecosystem that brings together adjacent industries to provide an improved service of greater value to insurers and their customers.”
This “greater value” often comes to insurance carriers in the form of new, emerging data sources. Additionally, insurers can leverage this data in an innovative way with the use of artificial intelligence. According to the report, artificial intelligence is the primary technology for 41% of the Startupbootcamp participants.
Jim Bichard, PwC insurance leader for the UK, commented on the changing nature of the insurance industry, observing that “Three years ago the hype was about startups disrupting traditional insurers. Now the talk — and increasingly the reality — is about startups and insurers working together to create meaningful partnerships.
Read the full Digital Insurance article here, and download the InsurTech Trends Report here. Digital Insurance keeps innovative insurance professionals up to date on the critical issues, ideas and trends related to insurance technology and information.
