The whole industry is being shaken from head to toe. With more ways to collect data, better machines and algorithms with which to analyse it, insurers can now calculate risk better than ever. Good news for the consumer.
On the flip side, with so much new technology, anyone can get involved with the previously 'closed doors' insurance world. Come along to any InsTech London event and you will see the plethora of young faces and bright minds turning the industry on its head.
With the ever increasing competition, firms need new ways of distinguishing themselves from the crowd. The old vanguard has to justify their position, their expertise and open up to the new market.
Openness comes in different forms:
- Being open to any and all new technology. One size no longer fits all. Each decision should be based on providing better value to each and every customer. This much is obvious.
- A less obvious aspect of opening up to new ideas is changing the way firms subsequently communicate with their customers and how they showcase their knowledge: give the customer a reason to entrust you with their money! Become both a technological and a thought leader. Showcase your expertise on the biggest stage. By talking about what you know, the customer will be interested in what you do.
Many insurance companies are investing heavily in technology, though too often they are still aiming for incremental improvements to their business rather than daring to face head on the disruptive innovations afoot. History records hundreds of companies overtaken by such disruption. But so too does it offer shining examples of companies that had the courage to embrace it. Which camp will today’s insurers find themselves in a decade from now?