8DECEMBER - FEBRUARYIN MY OPINIONIN MY OPINIONIN MY OPINIONThe insurance industry is ripe for transformation. Clients expect higher levels of service. They expect fairness, and they expect solvency. However, the industry is also risk averse and heavily regulated. This makes it difficult for insurers to adopt new technologies and keep up with the changing needs of their customers. In 2015, $13M in funding went to a company in stealth mode, focused on blending insurance and insurtech in a new way. Using chatbots, the company claimed the ability to adjust and settle a claim in minutes. Lemonade, an organization that probably made every insurance CEO sit up and ask their claims department how fast they were. The challenge? It took someone `else', an outsider unburdened by tech debt or a status quo of how things must be done. An industry so behind the times that one new company focused on using tech to deliver service received immediate and ongoing investor interest. It's not quite a blockbuster moment, since other insurers are still around. So how much closer is the industry in 2023? If technology would stop moving, perhaps that would give some breathing room for insurers to catch up. Can we take a pause to upgrade core systems and reduce tech debt? Insurtech 2.0 is about finding ways to use technology to deliver insurance services that meet client expectations while also addressing the challenges of solvency and regulation. An opportunity for successful, profitable partnership between insurers and insurtechs. For insurers, this means understanding your business problems and how technology can help you solve them. It also means being open to new ideas and being willing to experiment. For insurtechs, it means understanding the needs of insurers and presenting your solutions in a way that addresses their unique needs. It also means having your security basics in order and being able to demonstrate how your solution will protect sensitive data. The partnership between insurers and insurtechs can bring the industry to a new level: services and products INSURTECH 2.0: ARE WE THERE YET? By Konrad Hendrickson, Vice President Operations, American NationalKonrad Hendrickson
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