Insurtech partnerships are a current trend in the insurance industry and are proving key for companies to achieve success. The partnership set-up enables Insurance companies to focus on what they do best, Insurance, and Insurance technology companies to empower Insurance companies to drive digital disruption.
By fast forwarding to the end of the value chain and focusing on the customer, Insurance Technology companies can ensure the Insurer processes revolve around the customer journey rather than the processes themselves.
So, who benefits from this insurtech partnership? The customers, the Insurers or the regulators? In fact, in my opinion, the answer is, all of three of them.
Firstly, industry initiatives such as Digital Distribution, Blockchain and Machine Learning drive a better journey for new and existing customers.
Secondly, an improved customer journey leads to client satisfaction and therefore client retention which means Insurers are able to cross and up-sell to improve cashflow (Blockchain and PCI compliance). In addition it provides optimisation of the business model, reducing costs. This includes technology costs by looking at infrastructure and taking the giant leap to move off the spiderweb of legacy systems.
Lastly, evidence of PCI compliance and TCF are evident to keep the regulator happy.
The key in all of this is for the Insurance companies to find the right strategic Insurance Technology partner. The problem is that for Insurers, technology is not their specialist area and they can struggle to keep up with the ever changing technology available in the digital space. The answer is to find a partner that has the capability to understand their drivers and customer journey and is able to work alongside them for the longer term.