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.”