Is insurtech moving to the mainstream?

Insurtech could be moving more towards the mainstream of the industry, an expert has said.

Laura Kalomiris, director of operations at Trov, said that one of the big trends she saw in insurtech over the course of 2017 was its move toward the mainstream as more businesses looked to jump into the innovative technology.

“A lot of new industries realised that there was need for a new type of insurance to essentially bring on and engage new customers,” Kalomiris told Insurance Business.

“[There was] A lot of interest in how can we make insurance products more inviting, more understanding for the customer, and also even in other areas such as home contents providers offering content items, how should we engage the customer as a one stop shop – not just the item but providing insurance as well.”

Kalomiris said that she believes partnering between existing incumbents and innovative firms offers the easiest way for both parties to benefit. Incumbents bring with them a cache of data and experience, while insurtech firms bring their innovative spirit and new ways of thinking to a partnership.

“I think the easiest option is to potentially look at partnering with an insurtech firm because being able to use the data that they have collected over the years and adapting it with what our platform capabilities are is an efficient and effective way, and essentially the quickest way, to get something out to market. It also could offer learnings as well I believe,” Kalomiris said.

As new generations of buyers arrive in the marketplace, Kalomiris said that brand is becoming less important. While many buyers may have formerly stuck with an insurance product for years, the lack of brand loyalty for younger clients means opportunities exist.

“The reality is the new generation - which is all about mobile - there is no real relationship towards brand,” Kalomiris said. “It is all about offerings and ‘what can you give me’ and what is the simplest and easiest solution.”

Kalomiris said that, with the emergence of new generations of buyers, “it is almost silly” for existing players to “sit back” and stick with legacy ways of doing business.

“Unfortunately, that new generation is coming through and it is causing disruptors to come into the market which is a good thing, as it is changing the norm,” Kalomiris continued.

“It is a good thing I think but it would be silly to not invest or even look into the solutions insurtech firms are offering.”

Source: Insurance Business