Insurtech is in good health. 2017 was characterized by strong growth, an increase in technological maturity, and the continued development of local and regional hubs around the world. Europe and Asia are playing a more significant role than in the past and informing more partnerships than ever before.
However, the way the insurance industry currently views and leverages startups makes them far less effective – as a force for transformation and innovation – than they could be. Some insurers appear to be expecting the insurtech movement to deliver 100 percent of the changes that are required, whereas they should instead be looking to insurtech to set a good example and indicate the way ahead. And it’s not simply about delivering radical innovation.
Leveraging startups to help improve existing core processes and reduce traditional frictions in the value chain will be just as important. The industry still needs to address some basic but long-standing issues (in terms of poor customer experience, for example) before insurtech can really start to bring full-blown innovation to the mainstream industry or to everyday policyholders.
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