New SMA Blog by Mark Breading, Partner, Strategy Meets Action —
After three intense and exhausting days at ITC2019, I’m a little conflicted. It was quite exciting. And there are many fascinating companies and ideas that are truly transforming our industry. But then King Solomon’s words (from the Bible) come to mind – “There is nothing new under the Sun.” I don’t mean to express negative sentiment regarding the state of InsurTech and innovation in insurance. It’s just that, in many ways, what we are witnessing is an increasing maturity of the movement.
Of course, virtually everyone is talking about AI/machine learning. Digital transformation is high on the list of activities and discussions. New options for distribution, the evolution of new ecosystems, and the continuing progress of the new era of computing are compelling topics. And finally, the potential and progress of transformational technologies like the IoT, autonomous vehicles, wearables, and many other technologies are what is fueling much of the innovation. But it still leaves me wondering whether I saw anything fundamentally new at ITC.
There were a few announcements and companies that raised some eyebrows, to say the least. Here is my list of those that the industry should take note of:
- USAA and Google partnership. These companies have collaborated to create computing visioning/machine learning capabilities for auto vehicle damage assessment (see announcement). As far as I know, this is the first instance of Google actually developing or co-developing a purpose-built insurance solution. Sure, they tried Google Compare and have invested in Applied Systems. But this is a case of Google leveraging their deep machine learning capabilities to provide a capability specific to insurance.
- Genpact and Apple strategic partnership. Okay. So, Apple has established partnerships with others like IBM that have resulted in some insurance solutions, but this feels more ambitious and extensive. Time will tell, but this is a case of another one of the big global tech companies increasing their focus on the insurance vertical.
- Mitchell/Qualcomm smart glasses solution. Augmented reality for use by repairers at auto collision repair facilities (see announcement) is a very cool solution from two well-established incumbent tech companies, demonstrating that there is substantial innovation coming from these corners (in addition to the startups).
- The spread of great use cases. Although not new, we are seeing many examples of innovative uses of machine learning, aerial imagery, the IoT, new digital brands, interesting products, and more. In past years, there might be one or two examples to cite in a particular line of business and/or business area, but now there are many InsurTechs, incumbent tech companies, and insurers that can cite multiple examples of business value delivered.
So, has a new theme emerged? I suppose it depends on your definition of “new.” I prefer to think of it as the evolution and maturity of ideas and technology solutions that have been around for a while. But now it is real. And it is a great thing for the industry. The last few years have been revolutionary for insurance in some ways, but based on the trajectory that I am seeing at ITC and elsewhere, there is tremendous innovation and transformation yet to come. This industry is likely to look quite different a decade from now.
About The Author
Mark Breading, a Partner at Strategy Meets Action, is known for his insights on the future of the insurance industry and innovative uses of technology. Mark consults with insurers and technology companies on forward thinking strategies for success in the digital age. His inventive methods and his ability to incorporate InsurTech and emerging tech into business strategies are unparalleled. Mark also leads SMA’s research program, has overseen the publication of over one hundred research reports, and directed custom research projects for insurer and tech clients. His thought leadership in the areas of InsurTech, emerging technologies, customer experience, and digital strategies has earned him rankings as a “Top Global Influencers in InsurTech” by InsurTech News and Onalytica and a place in the 10 finalists for the “Top Global IoT in Insurance Influencer Award.”
Before joining SMA in 2009, Mark spent 25 years with IBM, where he co-developed IBM’s Account Based Marketing program and led the global project office to implement ABM across all industry verticals worldwide. Mark has held both technical and business roles in sales, consulting, marketing, and business strategy and has advised insurers around the world for almost 30 years.
He is a frequent speaker at industry events; an InsurTech mentor with the Global Insurance Accelerator; and a frequent contributor of articles to Insurance Thought Leadership, Insurance Networking News, LOMA Resource, and many other industry publications.
Exclusively serving the insurance industry, Strategy Meets Action (SMA) is an advisory services firm offering retainers, research, consulting, events, and innovation offerings to both insurance companies and solution providers. Learn more about SMA at www.strategymeetsaction.com.
SOURCE: Strategy Meets Action (SMA)