As per Capgemini InsurTech firms’ deft use of advanced technology is disrupting existing insurance practices and business models in an industry that has traditionally relied on scale for success.
Capgemini Ian Campos states: Regardless of the focus or go-to-market approach of an individual InsurTech firm, new-age insurers are driven to deliver the best possible experience to customers (insureds and claimants), agents, partners, and employees. The result? Disruption of a multi-billion-dollar industry that traditionally grew and profited through reliance on significant scale and high entry barriers.
InsurTech firms’ clever use of mobility, digitalization, and data-driven decision making has earned them substantial consumer mindshare as they seek meaningful market share. In other words, regardless of their relatively smaller size, they are punching above their weight and setting the standard by which all incumbent carriers are measured.
InsurTech nimbleness, guerilla-marketing tactics, and penchant for self-promotion are supplanting incumbents’ massive scale and strength. Slowly, and in some cases reluctantly, traditional insurers are coming to realize that if they do not learn to innovate quickly, their considerable strengths in today’s context will tax their success in tomorrow’s more agile, innovation-driven insurance marketplace.