June 18, 2018

Insurance Incumbents Are Moving Ahead in Their Quest Towards Digital Transformation Through InsurTech Partnerships

The general trend in the global financial services industry has been shifting from disruption to collaboration. While incumbents are looking for innovations, startups are looking for scale. Thus, the growing collaboration between them is delivering win-win benefits at multiple fronts across FinServ. Leading in this race for collaborative innovation are InsurTech startups and insurance incumbents. Insurance has always been a peculiar segment where the challengers, from the start, have positioned themselves more as an enabler rather than a disruptor. According to McKinsey, 61% of InsurTech companies aim to enable the value chain, while 30% are attempting to disintermediate incumbents, and just 9% are targeting full-scale value chain disruption. InsurTech startups have the potential to strengthen the tech infrastructure of incumbents and deliver value in terms of enhanced UX, data-driven decision-making, smart underwriting, consumer-responsive product development, etc. As InsurTech startups continue to emerge across various components of the insurance value chain…

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