3 min read
After the massive digital shift last year, insurtech is a more familiar term in the industry. However, what might still be in the shadows is how to best leverage it and create a strategic advantage with it.
The best way, of course, is to team up with an informed partner company. But, other questions arise here: how to decide which company to partner with? What is the criteria for defining a good partner company so the collaboration is right? And once the collaboration has begun, how to integrate solutions within existing processes so it all binds together in a strategic, profitable way?
This week, we explore the answers to these questions.
According to Investopedia:
Insurtech refers to the use of technology innovations designed to squeeze out savings and efficiency from the current insurance industry model. Insurtech is a combination of the words ‘insurance’ and ‘technology,’ inspired by the term fintech.
While innovation is a continuous process, the term insurtech became popular in 2016 to mark the pressure for insurance companies to adapt to increasing customer expectations through the adoption of meaningful technology.
Therefore, a real insurtech company will provide value by either augmenting existing capabilities to bring significant savings or by enhancing customer experience retention and acquisition.
Once you realize the practical importance and benefits of insurtech, it’s time to bring in a collaborator who can help you build a solution that takes your company to the next level of growth. As you meet, discuss, and interview these potential collaborators on the solutions and strategies they suggest, here is a set of criteria that can help you in recognising the right one:
Each business will have a unique structure so the solution will need some tweaks that are unique to you. If those are thought of and accounted for by the potential collaborator, then it is probably a good fit.
Insurtech can help to drive digital transformation within your organization. The first step is a critical review of existing processes and challenges. The second is to onboard a partner who can help you implement those processes and solve those challenges. For a starter on who you could collaborate with, you can go through this list of the five best insurtech businesses.