Editorial by Rick Huckstep
The rise of InsurTech digital platforms
For many on the traditional side of insurance, their notion of InsurTech, the digitisation of the economy and the 4th industrial revolution, involves hanging onto old ways of working. This lipstick on a pig approach to a digital strategy papers over the inefficient and outdated modes of insurance operation that sit behind the glossy app and digital front end. In extreme cases, the traditional insurance luddites still view InsurTech as some kind of snake oil that is making promises it cannot keep.
They couldn’t be more wrong.
It is the enlightened ones in the industry that recognise the insurance industry had lost pace with advances in technology. The industry’s obsession with building massive technology infrastructures that cost a small fortune and take a decade to implement is a self-inflicted barrier to innovation and advancement.
For 3 years now, I have argued that the insurance value chain will change. From a linear flow of risk and premium, signs are already there that insurance is evolving into a holistic value chain based on 3 elements; Risk Capital, Digital Brands and Digital Platforms.
In this month’s InsurTech Insights, we focus on one of these 3 elements; digital platforms. The articles from KPMG and myself take a very different perspective on the rise of digital platforms in insurance.
Victor Caballero of KPMG Australia comes at this subject from the perspective of data. And how insurers are able to use new sources of data in ways they couldn’t before. Key to this is the engagement with customers. Using digital platforms to build ecosystems of customers, providers and specialist service providers, Victor sets out an insurance vision for the future built on these digital platforms.
In my article, I argue that mega money legacy systems are out and fleet of foot digital platforms are in. To understand the subject better, I sought the help and guidance of Daniel Longhi, the MD for tigerlab. In the piece we look at digital platforms are enabling faster speed to market, greater use of data, improve operational efficiency, and reduce the burden cost of IT.
Chairman, The Digital Insurer
Rick argues that mega money legacy systems are out and fleet of foot digital platforms are in, with help and guidance from Daniel Longhi, the MD for tigerlab.