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As the insurance industry continues to reinvent itself with connected cars, homes and wearables, fintech startups are entering the market in droves, disrupting traditional insurers. Their biggest weapon: the cloud. Still, some in the insurance industry think digital success can happen without the cloud.
Digital transformation cannot happen without the cloud. The cloud makes digital happen.
Blockchain, biotech and connected devices have significant ramifications for the insurance industry, and the companies that use them proactively to improve customer service, speed to market, and margins will reap the most benefits.
There are industry-specific applications that are increasing the range of opportunities for revenue and savings. But these technologies do not happen without the flexibility, reliability, security and massive capacity of the cloud. The one-size-fits-all analytics model is now dwarfed by the cloud’s firepower.
New cloud-based industry entrants are capitalizing so successfully on this technology that a recent Accenture survey found that 82 percent of insurers believe these competitors are disrupting the industry.
As Accenture’s John Cusano pointed out this summer: “Insurance technology, insurtech, attracted around $2.6 billion of this outlay. This is still a small slice of total fintech spending but it’s a big step up from the previous year’s $800 million. And spending on insurtech looks set to surge. In the first quarter of 2016 more than 45 insurtech deals were sealed, with funding totaling $650 million.”
While 83 percent of insurers surveyed agree that the cloud will foster innovation in their business that was not previously possible, only 49 percent are investing in a comprehensive digital technology program as a part of their overall business strategy.
In order to compete with the insurtech startups, traditional insurance companies need to put their money where their mouths are, or risk more of their market share going to the new kids on the block.
To learn more, register to download the report: Cloud as Rainmaker