Ask any insurance carrier what keeps them up at night and the answer will have something to do with satisfying the generation of ‘on-demand’ customers. Often tied to this specific pain point is the rise of insurtechs. After all, most insurtechs’ reason for existence is to accelerate digital transformation – a necessity for meeting the ‘right here, right now’ needs of modern customers.
Yet, many carriers overlook the value that comes from a partnership with an insurtech and immediately sees them as an imminent threat. In reality, the threat is not the insurtech; rather, it’s the competing carrier that correctly leverages the insurtech to enable seamless digital experiences.
While Seinfeld character George Costanza may have had a negative reaction to “worlds colliding” – when people from different parts of his life (romantic partners, friends, and family members) interacted – worlds colliding in insurance is a good thing. Actually, it’s a great thing. Combining the incumbent’s world-class insurance products with the agile technology of an insurtech creates a disruptive force capable of delivering a seamless, on-demand customer experience.
Insurers that work collaboratively with startup innovators are going to win every time. Benefits experienced by carriers that find the right insurtech partner, such as those listed below, are simply too advantageous to fail.
- Quickly and decisively adjust to evolving customer needs.
- Digital experiences at each phase of the insurance lifecycle.
- Advanced insurance platform features like self-service quoting, automated claims handling, streamlined underwriting, and more that make the front-end user experience more desirable for the customer.
- Reduced costs thanks to operational workflows that streamline back-end delivery.
- Resources dedicated to ongoing innovation.
Insurtechs are the vehicle that make digital transformation for incumbents possible. What carriers should stay up at night worrying about is the existing competition that has found, and leveraged, the right insurtech partner to stay ahead of the curve.