Insurtech report identifies structural shift among insurers

The insurance industry is facing a structural shift that necessitates collaboration with insurtechs if it is to meet rising customer expectations, according to the World InsurTech Report 2019, published today.

The report, a collaboration itself between by Capgemini and Efma, has identified four fundamental shifts taking place in the industry. First, a shift from product focus to customer experience. Some 70% of insurers and insurtechs said a focus on holistic risk solutions for customers was critical to establishing a future-state insurance marketplace.

“As the insurance marketplace evolves, insurers will move beyond their traditional role as payers covering customer losses to partners that identify and forecast risk, helping with insurance and related non-insurance needs,” said CEO of Capgemini’s Financial Services team, Anirban Bose. “To deepen customer relationships, insurers will have to collaborate more with insurtechs who are already mastering the customer experience by leveraging the most innovative technologies and use of data.”

A second shift sees data evolving as a critical asset. More than 70% of insurers and insurtechs said advanced data management capabilities are critical.

Thirdly, the report identifies a transition from asset ownership to a shared economy; more than 35% of insurers and insurtechs have already identified the benefits of focusing on shared ownership of assets.

Finally, there is a growing acknowledgement that partnerships with specialists can reap greater rewards; 90% of insurtechs and 70% of incumbents said they want to collaborate with each other. Both insurers and insurtechs have an appetite for collaboration with other sectors, including healthcare providers as well as the travel, transportation and hospitality spaces.

“Insurers will benefit from partnerships with insurtechs as the marketplace becomes more crowded,” said secretary-general of Efma, Vincent Bastid. “The data shows that insurers and insurtechs are eager to partner with each other, which will ultimately benefit the customer in the form of more advanced products and services.”

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