Competition vs. Coopetition in the Insurance Market
By Denis Thomas
Associate Director, KPMG
Disruption via technology has been rampant in the fields of media and entertainment but technology has taken a while to latch on, especially within financial services. Banking is currently undergoing disaggregation via several modules that were once core, such as payments and lending. Insurance is at its nascent stage and rife for disruption as several players continue to compete and bite into each other’s profit margins.
Competition vs.Coopetition
“I’m going to destroy Android, because it’s a stolen product. I’m willing to go thermonuclear war on this.”
This quote from Steve Jobs is just a glimpse into how nasty competition can get. This was partly needed and partly not. Do we need similar levels of competition within the insurance space? Can we remain profitable and compete in today’s dynamic, technologically disruptive arena? Can all players in an ecosystem equally consider all options and invest in ideas with a high probability of success? No, it would be impractical to even think so! Ideally, we need to spread our investments wide and far and rely on experts within subdomains that complement our overall strategy and vision.
If we follow this thinking and extrapolate this thought further, there are several venues available within coopetition1 that could benefit both parties, the simple premise of collaboration between business competitors. Coopetition can help in the following ...
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