Insurance firms plan to significantly increase collaboration with insurtechs

Insurance firms plan to significantly increase collaboration with insurtechs

Efma and Capgemini report suggests partnerships will redefine customer experience and business models

Rebecca Gibson |

Almost 96% of insurers are looking for opportunities to collaborate with insurtech firms, according to a new report from Capgemini and Efma.

The first-ever World InsurTech Report found that most insurance executives believe insurtech companies will be a ‘major catalyst’ in helping to redefine the ways the insurance industry operates. Around 67% of the respondents expected insurtech start-ups to redefine customer experience, while 37% said they could help create new business models and just over 35% said they would ‘enhance incumbent insurers’ capabilities.

According the report, 78% of the insurance firms that want to collaborate with insurtechs would prefer to establish partnerships with data specialists, claims management solution providers, front-office solution providers and technology specialists so they can develop new solutions. Meanwhile, 76% would rather take a solution-as-a-service approach and just under a third would consider acquiring insurtechs.

Most insurance firms anticipate multiple benefits if (or when) they do collaborate with insurtechs. Almost 78% expect it will give them more capabilities to improve the customer experience, just under 60% think collaboration will result in faster time to market, 46% think they will gain new digital capabilities, and 41% predict it will give them a competitive advantage over their peers.

“It’s clear that insurers and insurtechs see collaboration as the key to success in the evolving industry ecosystem, with re-imagined customer experience at its heart,” said Anirban Bose, CEO of Capgemini’s Financial Services Strategic Business Unit and group executive board member. “Finding the right chemistry between collaborators to create a sustainable, agile position in the industry is the key to determining who will be future industry leaders.”

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