Traditional insurance players are being warned to keep an eye out for the Big Techs and other non-traditional players as they continue their march towards the space. In line with other sectors, increasing digitisation amid COVID-19 represents an opportunity for insurers and Big Tech alike.

On the publication today of its latest annual World Insurtech Report, Capgemini's Anirban Bose says insurers must look beyond other insurance companies as their competitors.

“Forming scalable relationships with insurtechs will help insurers digitise faster and more efficiently, deepening their customer relationships and helping them to fend off these new entrants,” he explained.

COVID-19 impacted sub-sectors of the insurance market in different ways as life and health experienced a hike in claims, while travel and auto felt a decline. Big Techs have raised the bar for customer experience and trust during the pandemic, providing consumers with crisis-proofed processes, real-time responses and intuitive customer care, according to the report.

Policyholders’ willingness to purchase insurance from Big Techs has increased from 17% in 2016 to 36% in January 2020 to 44% in April 2020, it said.

To compete with Big Techs, Capgemini advises that insurers focus on the critical priorities of superior customer experience (94%), "crisis-proof processes" (90%), real-time response (87%), and being a "caring partner" (86%).

Efma CEO, John Berry added: "Insurers need to become more customer-centric in everything they do. Insurtechs’ maturity and willingness to collaborate to bring new technology solutions to insurers are accelerating, aiding insurers to meet rising customer expectations."

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