Insurtech has been steadily planting its roots firmer and firmer in the insurance soil for the better part of a decade. With its rampaging growth not looking like its slowing down anytime soon, it is high time for insurers and other stakeholders to start embracing insurtech. Understanding how to benefit from technology and recognizing the many merits and advantages it carries with it will catapult your business into the future. Following are five ways of unraveling the insurtech phenomenon and reaping its many benefits.

Upgrading and updating

While many insurtechs offer new products and ways of distributing, many are also on a mission to aid insurers in their pursuit of modernization. This means that plenty of insurtech startups are offering new ways of execution in terms of product development and data utilization. Insurance companies and intermediaries are increasingly procuring modern cloud-based core insurance systems from insurtech startups to improve, simplify and streamline processes and workflows. To have the speedy insurtech way of getting things done, integrated with the heavy insurance experience, is unbeatable.

We discuss the possibilities of modern IT and how it can help you reach your goals more in-depth in the article Why a service-based approach to IT operations is the future.

Mentoring & consulting relationships

With the insurtech scene still being relatively young, many of the entrepreneurs and employees have fresh ideas and experience from a wide range of industries and academic disciplines. Entering such a complex field and being allowed an outside perspective is immeasurable in worth. At the same time, insurers hold different expertise and incredible first hand experience derived from years of work and dedication. Therefore, active mentoring and consulting relationships between the two will be lucrative and beneficial in a multitude of ways, effectively lowering the knowledge barrier for all parties and moving the industry to greater plains.

Investing and capitalising

With more insurtech startups entering the scene, the opportunity for investment is ripe with possibilities. Funding provides the insurtechs with an opportunity to grow and investments from insurance companies combined with industry insight will ensure that the industry grows in the right direction. This feeds insurance corporations with opportunities to capitalize and encourages the industry to continue flourishing.

To have the speedy, insurtech way of getting things done, integrated with the heavy insurance experience, is invaluable.

Picking up the pace

The insurance industry has been treading water for a while, something that is rapidly starting to change. Even though many insurtechs are business-to-business oriented and fully fledged in assisting insurers to modernize, many are committed to challenging the present insurance model. This means that the industry is moving at lightning speed, which gives insurers new incentive to reinvent themselves. The further establishment of insurtech boosts the competitiveness in the field and makes sure that everything is constantly moving forward.

Pursuing a common goal

By working together, insurers and insurtechs can meet the ever-growing customer expectations through new technology and methods. This is a common goal for both insurance and insurtechs, as both are ultimately looking to provide a desirable product to the end customer. By combining the technology provided by insurtech with data and information available to the insurers, the possibilities are endless. Thereby, customer satisfaction is more within reach than ever.

Insurtech is increasingly solidifying its role in the insurance world. Adopting the available technology now will prove to be beneficial in more ways than insurers could have imagined. These types of collaborations will effectively create a “best of both worlds” situation, as it enables growth and long term stability in the market. Insurers and insurtechs provide equal business value, but only by working together can they build viable business models.