Insurers recognise that the everyday lives of their customers are being transformed by new technologies. They also recognise that this transformation is affecting their own industry, which is undergoing an ecosystem disruption caused by technology-driven new entrants and existing competitors alike. Insurers are thus facing increasing pressure to evolve and reinvent themselves before that disruption hits the bottom line.
However, despite these emerging trends, a disconnect exists between the amount of disruption perceived and insurers’ willingness to invest to defend against and/or take advantage of the innovation. A survey conducted by PwC found that 43% of the industry players claim they have FinTech at the heart of their corporate strategies, but only 28% explore partnerships with FinTech companies and even less than 14% actively participate in ventures and/or incubator programs.
Now more than ever, investment in research & development and determination to exploit innovative technology are vital for the survival and business innovation of insurers. Around the world, insurance companies are betting on digital innovation to keep operational costs down, improve customer engagement and reinvent their businesses.
In this discussion, we will look at how incumbent insurers who are currently focused on catching up with their competitors around customer centricity and other current trends can look at possible approaches to innovate from within, make the right investments or spin of an innovation arm to position themselves as frontrunners in the new era of insurance.