• Contact Us
  • About
  • Advertise
  • Privacy & Policy
Thursday, March 30, 2023
  • Login
  • Register
Business Post
E3P Motor Insurance
  • Home
  • Insurance
  • Pension
  • Business Unlimited
  • OIL & ENERGY
  • Feature
  • News
  • Home
  • Insurance
  • Pension
  • Business Unlimited
  • OIL & ENERGY
  • Feature
  • News
No Result
View All Result
Business Post
No Result
View All Result
Home Feature

InsurTech Is Real And Important – Not “Just Hype”

Staff Reporter by Staff Reporter
November 7, 2021
in Feature
0 0
0
InsurTech Is Real And Important – Not “Just Hype”
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on WhatsApp

At ITC 2021 in Las Vegas, during an on-stage conversation with Munich Re board member Lisa Pollina, Chubb CEO Evan Greenberg commented that InsurTech promises of transformation are “just hype.”  With that, Greenberg put a spotlight on a debate that has been percolating since the term “InsurTech” was first coined around 2010, when Germany-based Friendsurance created a peer-to-peer insurance community.

There is no way to know whether Mr. Greenberg’s comments were meant to provoke and engage the audience (made up mostly of entrepreneurs, InsurTechs, investors and insurance industry leaders), or whether Mr. Greenberg meant exactly what he said as dismissively as it sounded. Either way, he was mostly wrong – and a bit right.

Insuretech Confusion

Not only does our industry use the word InsurTech inconsistently but we can’t even agree on how to spell it – “InsurTech” or “InsureTech”.  Regardless, let us agree that InsurTech refers to the use of technology innovations designed to significantly reduce cost, increase efficiency and improve customer experience in legacy insurance industry models.

InsurTech is a combination of the words “insurance” and “technology” and was inspired by the earlier term “fintech” which has now spawned an entire generation of “____tech” abbreviations including in our own industry, ClaimTech, PropTech, MarTech and more.

Regardless of how you spell it, entire global ecosystems have emerged to finance, support and service the global InsurTech industry from accelerators, incubators, college programs, conference and networking events and dedicated media sites and publications to new investment funds and models.

Evidence that InsurTech is Real

The word hype is a shortened form of hyperbole which implies a misleading exaggeration of something’s importance or benefits. The InsurTech phenomenon is many things but definitely not hype. InsurTech is a movement and it is very real and highly transformative.  One good measure of its importance is the success of the very event where Mr. Greenberg offered his comments. Over 6,000 of the faithful braved the lingering risks of a pandemic to make the pilgrimage to Las Vegas .

The underlying conviction driving founders and backers of InsurTechs is that the insurance industry is ripe for innovation and disruption. InsurTechs explore opportunities that large conventional insurance firms are less interested in or equipped to exploit, such as offering hyper-personalized insurance policies, usage based and parametric insurance and using the new volume of data streaming from IoT enabled sensors and devices to price premiums more dynamically and contextually.

Included in the ITC audience were a healthy number of current and potential InsurTech investors whose industry is wagering tens of billions of dollars of capital on the prospects of InsurTechs.

In fact, according to a July 2021 McKinsey report titled “InsurTechs are increasingly ripe for insurer investments and partnerships”, their analysis of 2,000 global InsurTechs reveals rapid growth, evolving product focus, and a growing crop of innovative opportunities. They also describe how rapidly InsurTech funding has grown, identifying 1,719 deals from 2010-2021 totaling almost $25 billion globally.

InsurTech Categories

In a March 2021 Gartner report titled ‘Top Trends in InsurTechs for 2025’, distinguished analyst Kimberly Harris-Ferrante identified two distinct categories of InsurTechs – challenger insurers and emerging solution providers — and went on to predict that both “will continue to gain traction and reshape the insurance industry through 2025”.

One might argue that the challenge insurer category includes some InsurTechs who do not as yet pose a real threat to conventional insurers; Root, Lemonade, Metromile and even Hippo come to mind. To date, their stock market performance has been disappointing and this could well be the category of InsurTechs for which Mr. Greenberg’s comments were intended.

However, the InsurTech category of emerging solutions providers has not for the most part disappointed. Many of these companies have provided attractive exits to their founders and private equity and venture capital investors as they have taken themselves public, merged with competitors or been acquired by conventional insurers.

Greenberg Was Right, But Only in Part and Only for Now

If Mr. Greenberg meant that technology and hype does not change the fundamental fact that insurance at its core is the art and science of taking risk, then perhaps he was right – in part. It’s hard to argue that a company formed in the past ten years or less could have the depth and breadth of experience as one that has been in the business for a hundred years, or that it can meaningfully compete with one of the largest and best capitalized competitors in the industry. Consider that only days after Greenberg’s comments, Chubb announced their acquisition of Cigna’s Asia business to increase their A&H market reach for $5.75 billion in cash. Therefore, one would concede that conventional insurers are best at the “art” aspect of risk taking.

But as far as the value of experience in the “science” part of risk taking, legacy approaches and models could actually become the Achilles heel of incumbent carriers. New technology-enabled information sources such as connected cars, homes and people coupled with artificial intelligence and machine learning are replacing previously retrospective underwriting and pricing models with real-time, contextual and dynamic data models that enable insurers to price risk more accurately, fairly and ultimately more competitively and profitably.

The InsurTech movement is real and important and exciting and valuable and is quickly evolving. It can be described in many ways – but not as mere hype.

About the Author

Stephen E. Applebaum, Managing Partner, Insurance Solutions Group, is a subject matter expert and thought leader providing consulting, advisory, research and strategic M&A services to participants across the entire North American property/casualty insurance ecosystem focused on insurance information technology, claims, innovation, disruption, supply chain, vendor and performance management. Mr. Applebaum is also a Senior Advisor to Waller Helms Advisors.  WHA is the premier investment banking boutique focused on the crossroads of the Insurance, Healthcare and Investment Services sectors.

Stephen is a frequent chairman, guest speaker and panelist at insurance industry conferences and contributor to major insurance industry publications and has a passion for coaching, mentoring, business process innovation and constructive transformation, applying disruptive technology, and managing organizational change in the North American property/casualty insurance industry and trading partner communities. He can be reached at St***************@gm***.com.

Previous Post

Knack To Delight Customers Drives STI’ Sovereign Ease Of Insurance Transactions

Next Post

RSA Registrations: Youth Preponderance Guarantees CPS Sustainability

Staff Reporter

Staff Reporter

Related Posts

Tripod Agenda Of Insurance Regulator Shifts Insurance Landscape
Feature

ESG Risks Trending, Take Significant Space In 2023

December 19, 2022
NAICOM Tells Operators To Match Its Speed, Take Over Secured Markets
Feature

Businesses Fly On The Wings Of Covid-19 Despite The Sombre Global Vault

September 20, 2022
NAICOM Regulation Stirs Clear Of Wild Spin Focuses On Mid-Point With Policyholders And Operators
Feature

Future Of Insurance Blossoms With Multiple Ventures For Growth, Stability And Penetration

September 16, 2022
Next Post
PenCom Logo

RSA Registrations: Youth Preponderance Guarantees CPS Sustainability

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

NEM INSURANCE NEM INSURANCE NEM INSURANCE
  • Trending
  • Comments
  • Latest
ILAN Picture

Loss Adjusters Receive Charge To Match Speed Of New Developments

July 30, 2022
Custodian Investment To Acquire 51% Stake In UACN Property

Penetration: Operators Call For Insurance-In-Action

November 2, 2022
tope smart NIA former chairman

Insurance Milestone: A Beacon To Follow

April 3, 2022
ncrib logo

NCRIB And Universal In Pictures

August 23, 2020
Reinsurance Rates May Increase Into 2022, But Momentum To Wane: Fitch

Reinsurance Rates May Increase Into 2022, But Momentum To Wane: Fitch

April 13, 2021
Linkage Assurance Aligns With Brokers For Growth

Linkage Assurance Aligns With Brokers For Growth

December 6, 2021
Preferred PenCom Logo

PenCom Board Crafted To Hedge Setback

February 1, 2021
NCRIB Sets The Stage For Adaramola’s Tenure

NCRIB Sets The Stage For Adaramola’s Tenure

March 18, 2021
PenCom Approves Mrs Okwuosa New Access Pension Fund Custodian MD

PenCom Board Back-To-Work Pass, Gets Tick Over

February 1, 2021
PTAD Wipes 21,227 Parastatals Pensioners From Payroll

PTAD Wipes 21,227 Parastatals Pensioners From Payroll

January 31, 2021
How Strong Is The Reinsurance Sector Going Into 2021?

How Strong Is The Reinsurance Sector Going Into 2021?

7489
Scib CEO Tinubu

Professionals Want Value Dimension Added To Enhance Compulsory Insurance

6863
Allianz Claims Survey Shows Changing Claims Patterns

Internal Failures, Major Cause Of Cyber Claims

5511
As Nat Cat Losses Mount A Resilience Mindset Matters More Than Ever

As Nat Cat Losses Mount A Resilience Mindset Matters More Than Ever

1612
Anchor MD Loses Father

Anchor MD Loses Father

1610
Leadway Assurance Leads With ISO/IEC Re-certification

Leadway Assurance Leads With ISO/IEC Re-certification

1021
NIID: Dare Project To Take back Motor Policy From Touts Still Surging Despite Odds

NIID: Dare Project To Take back Motor Policy From Touts Still Surging Despite Odds

1015
PenCom Approves Mrs Okwuosa New Access Pension Fund Custodian MD

PenCom Board Back-To-Work Pass, Gets Tick Over

995
PenCom Trigger Lifts Transfer System Off The Starting Block With Split Responsibilities

Pension Funds Encounter First Waterfall

408
National Assembly Principal Officers Set To Strip Staff Of CPS Without Consent

PenOp Rails Against National Assembly Secret Bill To Exempt Own Workers From CPS

379
Nigeria’s Low Loss Ratio Crashes The Essence Of Insurance – Actuary Expert

Nigeria’s Low Loss Ratio Crashes The Essence Of Insurance – Actuary Expert

March 29, 2023
Fitness Enthusiasm, NEM Insurance Spins Wellness In The Public Space

Fitness Enthusiasm, NEM Insurance Spins Wellness In The Public Space

March 27, 2023
Global Insured Natural Catastrophes Losses Hit US$100bn

Global Insured Natural Catastrophes Losses Hit US$100bn

March 27, 2023

Invest In Speaking Customers Language Not Yours, Insurance Industry Charged

March 26, 2023
NAICOM Head office

Insurers Claims Obligation Increases By 18% In Q4 2022, N244.3bn Paid

March 26, 2023
NAICOM Regulation Stirs Clear Of Wild Spin Focuses On Mid-Point With Policyholders And Operators

Nigeria’s Insurance Industry Gross Premium Muscle Lifts N776.2bn To Closs 2022

March 23, 2023
Image Spin: Diipo Olarenwaju Says Blockers Of Loss Adjusters Vital Role Will Be Challenged

Image Spin: Diipo Olarenwaju Says Blockers Of Loss Adjusters Vital Role Will Be Challenged

March 23, 2023
Tax Administrators Charged To Match The Pace Of Global Technological Advancements

Tax Administrators Charged To Match The Pace Of Global Technological Advancements

March 21, 2023
Ojumah’ Exploits Earn Induction Into Sanlam Pan Africa Council Of Elders

Ojumah’ Exploits Earn Induction Into Sanlam Pan Africa Council Of Elders

March 20, 2023

FIRS Feast Of MoU Snaps UK Counterpart

March 18, 2023

Recent News

Nigeria’s Low Loss Ratio Crashes The Essence Of Insurance – Actuary Expert

Nigeria’s Low Loss Ratio Crashes The Essence Of Insurance – Actuary Expert

March 29, 2023
Fitness Enthusiasm, NEM Insurance Spins Wellness In The Public Space

Fitness Enthusiasm, NEM Insurance Spins Wellness In The Public Space

March 27, 2023
Global Insured Natural Catastrophes Losses Hit US$100bn

Global Insured Natural Catastrophes Losses Hit US$100bn

March 27, 2023

Invest In Speaking Customers Language Not Yours, Insurance Industry Charged

March 26, 2023
NAICOM Head office

Insurers Claims Obligation Increases By 18% In Q4 2022, N244.3bn Paid

March 26, 2023
NAICOM Regulation Stirs Clear Of Wild Spin Focuses On Mid-Point With Policyholders And Operators

Nigeria’s Insurance Industry Gross Premium Muscle Lifts N776.2bn To Closs 2022

March 23, 2023
Image Spin: Diipo Olarenwaju Says Blockers Of Loss Adjusters Vital Role Will Be Challenged

Image Spin: Diipo Olarenwaju Says Blockers Of Loss Adjusters Vital Role Will Be Challenged

March 23, 2023
Tax Administrators Charged To Match The Pace Of Global Technological Advancements

Tax Administrators Charged To Match The Pace Of Global Technological Advancements

March 21, 2023
Ojumah’ Exploits Earn Induction Into Sanlam Pan Africa Council Of Elders

Ojumah’ Exploits Earn Induction Into Sanlam Pan Africa Council Of Elders

March 20, 2023

FIRS Feast Of MoU Snaps UK Counterpart

March 18, 2023
Guinea Insurance Sets For Return To Profit Turf

Guinea Insurance Sets For Return To Profit Turf

March 18, 2023
Image Spin: Farewell For Omolola Adekunle Bankole

Image Spin: Farewell For Omolola Adekunle Bankole

March 17, 2023
Seplat Energy Says Allegations Against CEO, Board Untrue, Misleading

Seplat Energy Says Allegations Against CEO, Board Untrue, Misleading

March 16, 2023
Transactional Risk Insurance Now Mainstream Product – Report

Transactional Risk Insurance Now Mainstream Product – Report

March 15, 2023
Business Post

We connect brands with buyers and sellers of insurance, pension and also project insurance and allied Businesses to the trending generation. We help the various public to adapt to the constant changes as it would impact, and also enable advertisers to connect, engage and target opportunities on line , in print and in person.

Browse by Category

  • Business Unlimited
  • Feature
  • Insurance
  • News
  • OIL & ENERGY
  • Pension
  • Travel

Recent News

Nigeria’s Low Loss Ratio Crashes The Essence Of Insurance – Actuary Expert

Nigeria’s Low Loss Ratio Crashes The Essence Of Insurance – Actuary Expert

March 29, 2023
Fitness Enthusiasm, NEM Insurance Spins Wellness In The Public Space

Fitness Enthusiasm, NEM Insurance Spins Wellness In The Public Space

March 27, 2023
  • About
  • Advertise
  • Privacy & Policy
  • Contact

© 2023 BusinessPost

No Result
View All Result
  • Home
  • Insurance
  • Business Unlimited
  • OIL & ENERGY
  • Feature
  • News
  • Contact Us
  • About
  • Advertise
  • Privacy & Policy

© 2023 BusinessPost

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In