For the insurtech start-ups that will digitally transform business and technology models. Not just Silicon Valley but London, Frankfurt, Singapore and other centres of insurtech & fintech innovation. Silicon Valley has no monopoly!
Ali Safavi identifies 4 key areas of insurtech innovation:
- Improving user experience
- Risk assessment & underwriting
- Prevention of loss
- Cost reduction
See the details in the linked article in bottom pane below
There is another side to this though. Change management and digital transformation cannot happen unless cultural and organisational transformation happens first. Technology is a means to an end and not the end itself.
The classic outcome of too many a technology project without the cultural and organisation change in place is:-
- Over budget
- Under specification
- Over time
Insurtech will be no different
Insurance is on the verge of a massive overhaul. Many technologies have changed the way consumers buy and use their most valuable assets, so shouldn’t their policies change too? Drones armed with high-tech sensors, IoT and big data analysis provide vast amounts of additional information to insurers. Technologies like AI and new distribution models streamline the way customers interact with their providers. Insurance touches every part of our lives, and out of thousands of startups in Silicon Valley, almost all relate back to insurance in one way or another. Insurance giants are flush with capital and are are flooding to Silicon Valley to find the next startup to change the future of insurance.