Everybody is talking about insurtech. It is the buzzword on everyone’s lips.
But how do you workout what is useful and what is pie in the sky?
UK brokers know they need to adopt new technology in order to survive and thrive.
It may seem like there is a myriad of different kinds of technology that we all have to learn about, but in my mind, it is not so complicated and can be broken down into roughly three areas that are important for the broker market.
The first, and the one most insurtech’s are focusing on, are the portals that provide insurers and brokers with distribution channels linking them to the customer. For brokers dealing with the consumer market this has got to be the most pressing piece of technology that they have to adopt/improve on in order to stay ahead of the curve. The best-known technology revolution we have live through has been the mass adoption of the use of models such as moneysupermarket.com. Portals like this have taken over the retail space and forever changed the face of insurance. However, brokers’ adoption of new tech is behind the curve and the next generation of customer-facing distribution channels will be vital to brokers in the future.
The second is the technology used for companies’ internal processes and it is probably the biggest hurdle faced by the insurance market. Large legacy companies struggle to change this technology whereas start-ups have the benefit of being able to do “blue sky thinking” (I know that is a cliché phrase, but you know what I mean). Currently companies are developing new technological infrastructures on top of their legacy systems without integrating both the new and the old or removing the impeding systems. However, it is essential that the market modernise its outdated systems to meet increasing customer demands for convenience and cost-reduction
The third category is all the super clever stuff which is, machine learning, artificial intelligence, blockchain, quantum tech and nano tech. Possibly one of the biggest revolutionary pieces of technology on the horizon is quantum coding, which has the capacity to replace blockchain. Quantum coding, the stuff your smart phone is made up of, works as such a high speed it can impact the ‘unhackable’ firewalls in the blockchain, making all systems that use blockchain highly vulnerable. These new technologies really are revolutionary, and brokers will need guidance and knowledge to workout if these technologies can help them.
New technologies are being churned out at an alarmingly quick rate and brokerages and insurance companies don’t have the time, money or patience to keep on top of each new announcement. What we do takes the stress out of finding new technology or insurtechs to partner with. Our platform, which allows brokers to find the right people with whom to place risk as well as being able to find insurtechs to solve their modernisation issues. Basically, it is online networking for risk placement and insurtech finding on steroids. That said, we are classed as an insurtech start-up and technology is in our DNA. Insurtechs are starting to queue up to come on our platform so that they can help brokers like you. It may all sound incredibly complicated but a good insurtech should make your life easier, improve your bottom line and future-proof your business.
By Peter Clarke, Founder and Managing Director, Insurercore