Embrace the Shift
February 1, 2017 — The insurance industry has not been historically known for innovation. This may be an unfair characterization – insurers have in the past been at the forefront of leveraging technology and data to uncover insights about…well, mostly risk, but it was still innovative at the time.
And, while previous technology investments served insurers well for a long time, they have now become millstones around their proverbial necks – weighing them down as they try to deal with a rapidly shifting marketplace. This shift, driven from the outside-in, is a key reason for the emergence of InsurTech, which in turn is creating a wave of innovation in insurance.
As an industry steeped in risk avoidance, evolution is fine but revolution with rapid change and disruption creates uncertainty and potentially increased risk. At the heart of this revolution is a shift to the digital age. Unfortunately, many insurers do not fully understand or embrace this shift, creating a gap between insurer capabilities and market expectations.
Insurers sitting on the digital sideline waiting for a clear winning approach that they can copy in a “fast follower” mode, are allowing the gap to grow, giving existing competitors within the industry and new competitors from InsurTech and outside the industry to expand within the void.
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Tara Dilzer Alexander
Director, Marketing Communications and Creative Services