Incumbent and InsurTech Collaboration via Open Innovation Strategy
By Dorota Zimnoch
Founder and MD ZING Business Consulting, Strategic Advisor, The Heart
The digital revolution has hit the insurance sector, with InsurTech disrupting the entire value chain and customer life cycle. The “I want it now” culture, increasing consumer needs, high competition, and changing regulations force incumbents to change. As quoted by Computerworld, “a survey of 2,005 British adults, conducted on behalf of GMC Software in March 2016, found that 85 percent of consumers with insurance would like their insurer to give them insight into how they could lower their premium, for instance by suggesting changes in behavior.”1
Disruptive technologies offer the opportunities to redesign customer experience, create new products and value-added services, streamline internal processes, and increase operational efficiency.
The complexity of the insurance sector ecosystem, high barriers to entry, and potentially long return on investment allowed insurers to maintain a status quo for decades and keep new competitors away. Instead they focused on product and distribution strategies. In addition, the financial crises of 2008 impacted the reputation and trust of the industry. However, the digital revolution, the pressure from consumers, regulators, and competition, including the rise of InsurTech and tech giants, means that change in the sector is inevitable. PwC reported that cumulative 2010–2016 funding in ...
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