The insurance sector has some special features in terms of business model, distribution channels and relationship with the end customer that make it unique. Although a lot of people might label this sector as outdated or not so modern, we think that this is the sector in which we will see more innovation and it is the most called to collaborate with external innovation. But it is also and will continue being the one that puts at risk the traditional players who don't know how to adapt to the changes that are coming, changes that are accelerating every day.
Among them, there are new companies called InsurTech, technology companies that offer innovative products and services throughout the insurance value chain. Many see it as a risk and a competition, although many others see it as an opportunity.
What is true in all this? How big is this sector? Can you take advantage of this new wave of startups to improve a sector that has changed just a little in a whole century? Let's start by understanding the InsurTech phenomenon. If we compare these companies with other big waves of innovation such as FinTech (finance sector) or PropTech (real estate sector), we would say that InsurTech is the one that can most transform the traditional sector and the way we consume insurance in our life.
The InsurTech sector is undoubtedly in a formidable moment. In Europe, it is already one of the great trends together with FinTech.
And why all this movement? Is it really justified? On the one hand, the traditional sector has to accelerate its digital transformation to improve processes and reach the customer faster, more transparently, with the new products and services that it demands every day and always with the best possible user experience. This coupled with the maturity of new technologies such as Artificial Intelligence, big data, cloud computing, blockchain or IoT, makes change urgent.
On the other hand, the big difference between the insurance sector and the financial sector is that insurance is part of our day to day, it evolves as we change the way we live, take care of ourselves, move, enjoy or communicate.
How to take advantage of new business models and the use of new InsurTech technologies by insurers or insurance brokers?
The first thing to keep in mind is most of the InsurTech are B2B, this means that the vast majority are born with the aim of being suppliers of other insurance companies, seeking collaborations or even co-creating new ways to ensure customers and distribute insurance, many others have arrived to improve internal processes, giving it more agility, efficiency, and safety. It should be noted that traditional players must leverage to know and understand these new technologies and business models to identify the best opportunities and be able to lead is a new wave of change.
But the most important thing is to not fear the changes that are driven by new technologies and changes in the way of life. We must go step by step discovering each and every one of the opportunities presented to us today, and more fundamentally, in the future. Undoubtedly, InsurTech, insurers, and brokers are called to write many stories of joint innovation.
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