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Most InsureTech Startups Not Direct Threats to Insurers: Novarica

InsureTech startups provide opportunities for carriers to learn and form partnerships

Boston, MA (Sept. 26, 2017) – The insurance industry is buzzing about InsureTech; however, despite the obvious importance of InsureTech industry, most of the media in the space is directed towards innovators and investors. This approach neglects to address the two basic questions asked by any insurer CIO looking to make sense of the InsureTech space: Does this matter to my company, and what can we learn from it? In a new report, InsureTech for Insurers: 80 Startup Profiles, research and advisory firm Novarica profiles 80 InsureTech startups-including Analytics Arms Dealers, Beneficial Bots, Creative Carriers, and Digital Distributors-from the point of view of insurers.

“In fact, almost all InsureTechs offer opportunities rather than threats-either chances for insurers to partner with them, license technology, or simply to learn from them and take advantage of those lessons,” says Jeff Goldberg, Senior Vice President of Research and Consulting at Novarica. “Most insurers will face disruption from these startups only if their competitors choose to embrace a technology that they themselves do not.”

InsurTech for insurers (Novarica)

InsurTech for insurers (Novarica)

Key findings of the report include:

  • InsureTech is not the same thing as disruption. This industry (and the media) tend to link InsureTech and disruption. But the reality is that most InsureTechs provide opportunities or insurers rather than potential threats.
  • InsureTech carriers and distributors are focused on customer experience. With almost no exceptions, carrier/broker startups take advantage of the insurance industry’s failure to build better interactions for consumers.
  • “Doing nothing” is always an option. With so much emerging technology and so many startups, all insurers must intelligently choose where to focus their attention and-just as important-what to ignore.

A preview of the brief is available online from Novarica.

About Novarica

Novarica helps more than 100 insurers make better decisions about technology projects and strategy through retained advisory services, published research, and strategy consulting. Its knowledge base covers trends, benchmarks, best practices, case studies, and vendor solutions. Leveraging the expertise of its senior team and of nearly 400 CIO Research Council members, Novarica provides clients with the ability to make faster, better, more informed decisions. Its consulting services focus on vendor selection, custom benchmarking, project checkpoints, and IT strategy. More information at www.novarica.com.

SOURCE: Novarica

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