AXA AND INSURTECH – AXA presentation
Article Synopsis :
This brief presentation from AXA highlights the impact of new technologies on insurance business models, outlines key challenges, and identifies how traditional insurers are responding to the new nature of competition from InsurTechs.
According to AXA, the key tensions driving the InsurTech phenomenon are:
- Human-centric versus machine-driven
- Financial inclusion versus discrimination
- Transparency versus black-boxes of algorithms and data processing
- Empowerment versus paternalism
- Solidarity versus customized ‘segment-of-one’ offers
AXA’s view is old methods are increasingly ineffectual, even counterproductive, and incumbents need to adapt, including partnering and investing in InsurTechs. Three points of advice for moving forward positively include:
- Do not stay alone: Partner with small and large new players
- Test: Diversify pilots internally and externally
- Be clear on what you focus on: Not technology but customers. Listen to new customer expectations and partner with customers, rather than just making them pay
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Digital Insurer's CommentsWe like this report because it examines the InsurTech phenomenon from the carrier—rather than the consulting—perspective. Interesting is AXA’s focus on the ‘tensions’ driving InsurTech proliferation.
Human-centric versus machine-driven, financial inclusion versus discrimination, empowerment versus paternalism, and solidarity versus ‘solutions-of-one.’ In every case it’s old versus new and incumbent carriers dominate the old. Transparency versus black boxes of algorithms? At present, there’s nothing at all transparent about insurance. That’s the problem. Black boxes of algorithms may actually help clarify the process.
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