Just Insure It! TOON #8
Insurtech created a real sensation in the insurance market, as well as FinTech did it with the financial one. Analysts are excitedly reporting the changes that have already taken place, and predict the ones yet to happen. The so tranquil traditional market is bursting at the seams due to the events.
Of course, the current market structure definitely suits many companies, but it is already difficult to keep the changes within some kind of a framework, even if one really wants to. 8 out of 10 legacy players fear for the future of their businesses in such turbulence, the PwC report says. And here comes the golden rule: if you cannot resist a revolution — become its leader then.
And from here on the real hidden struggle starts: the reinsurers, who feel best in the absence of change, suddenly begin to stimulate the development of the new technologies, as well as investing in them. They are pushed by the gloomy prophecies concerning the coming decline of the role of reinsurance, as well as the total disappearance of insurance agents. At the same time, InsurTech startups are increasingly refusing to accept insurance companies as strategic partners, not wishing to limit themselves with single partnerships. In this game of chess, the alignment of forces is increasingly unclear, but one thing is clear for sure: everyone wants to get to the end customers as close as possible. Most likely, the latter will be the absolute winners in this game, and this is a good reason to rejoice.
Four Threats For Insurance Agents To Disappear In a Brave New Tech World
Consumers all over the world wanted an insurance agent. During the sales process, the power passes from the customer to the insurance company afterwards. In other words, the operators in the field needed a middleman. Then, there were the insurance companies which needed a distribution agent for their insurance products during the sale process. These were the reasons why the world of insurance was based on insurance agents all over the globe.(read more)
Reinsurers Turn To Tech: Insurance Market Cannot Carry Double
Anyone who looks at InsurTech investment data, can identify the level of investments from the traditional insurance companies in InsurTech startups. An interesting angle related to this matter is the reference of the startups to the reinsurance companies and the benefit that the reinsurance companies derive from the nature of their activity. (read more)
Four Reasons Why InsurTech Startups Won’t Get Subdued by Traditional Institutions
Previously, we wrote that InsurTech makes its way to the global markets and attracts attention as a lucrative investment target — technological breakthrough can provide 10% ROE to the insurance companies. But consider the hypothetical situation: what if the traditional players decide to oppose the threatening force of InsurTech? Definitely, this won’t happen directly, but it would provide some time for the legacy players to regroup and hold their market shares tighter. The idea doesn’t come from nowhere, after all: InsurTech follows the path of FinTech industry, and the markets have seen a painful setback of global investments since 2015. (read more)
The Game of Techs: The Markets Are in The Midst of An Epic Struggle
We see the establishment of new industries in a live mode, as ideas and phenomenons like FinTech and InsurTech attract more attention and inspire more people to join the process of digital evolution. Media speaks about the successes and failures of FinTech day by day, creating the tone of voice of a great growing industry. The strong developments make the legacy players nervous, and the most cunning enter the game to be always aware, searching for ways to catch the train of progress. The same happens with InsurTech, as we just recently summarized the current trends and events to come. (read more)
