New Report from Hartford InsurTech Hub and
Startupbootcamp InsurTech Explores how InsurTech Evolution is Continuing
New research from Hartford InsurTech Hub and Startupbootcamp InsurTech (SBC) launches today.
The relationship between insurtech startups and insurers have evolved from disruptor, to enabler, to partner. We see increasing partnerships and collaborations across the insurance value chain as insurers look outward to innovate. New technologies are necessary for insurers to become more efficient, customer-centric, and to explore new business models outside of the traditional insurance value chain. They must innovate and adapt their traditional products to meet changing policyholder needs and insurable risks.
Insurance companies are increasing their investment in innovation and partnering with startups to develop new concepts. Many insurers view startups as an important part of their business strategy, as they innovate to remain competitive in today’s changing landscape. They are willing to invest in these partnerships, as they provide a relatively low-cost opportunity to test new technologies and business models.
Startups are well positioned to be value-add partners to insurers. Startups provide agility, focus, and advanced technology to assist insurers in overcoming their most pressing challenges. Partnerships allow insurers to test and learn, to take calculated risks and make mistakes that will help them ultimately add more value to their clients. For startups, the barriers to entry are high and these partnerships provide an entry point to develop their businesses and reach the broader market.
The report shows that the narrative surrounding InsurTech has shifted and both parties are now working together to take the insurance industry into the next decade.
- Insurers of the future are more likely to focus on their core capabilities, with less of a focus on areas such as distribution or administration.
- Insurers strong decision-making capabilities are enhanced when startups offer new ways to analyze data, leverage big data sources and provide access to new data sources.
- IoT has the potential to move insurance from an indemnity-focused to a protection-focused model and, as a result, is attracting significant backing from investors.
- Big tech companies such as Amazon and Google are entering the insurance industry by acquiring and funding insurtech startups.
- Increasingly technology-enabled process automation is designed to perform end-to-end processes without human intervention, enabling their insurance company employees to spend more time on value-add work.
What next for InsurTech?
Sabine VanderLinden, CEO, Startupbootcamp InsurTech and Rainmaking Innovation Partner, says: “Insurers are looking beyond their typical boundaries for new ideas and business models. Not every new idea will succeed but with the increased partnership, startups have a high chance for commercial success.”