Enabling & Disrupting Technologies in Insurance

Insurtech strategies can be divided into disrupting and enabling technologies, and about 75% of Insurtech companies focus on enabling technologies (see here).  “Disruptors” are working outside of the traditional insurance ecosystem, looking to dramatically change traditional insurance processes.  “Enablers” are partnering with existing insurers and other insurance organizations to bring more incremental, efficient and effective technology-based change (see here).

Disruptors have and will continue to have a difficulty gaining traction because of the dramatic change that is by definition core to their strategy.  Many traditional insurance organizations are actively seeking partnerships with enabling Insurtech’s, bringing benefits to customers and insurers through incremental change.  It is possible, maybe even likely, that a small few of these insurer/Insurtech partnerships may be highly successful and develop into a disrupting influence.

Successful Insurtech implementation will occur and lead to competitive advantages and increased value to customers, but the road will not be smooth.  At this point it appears that enablers are having more of an impact on insurance.  There is much more to come.

Innovate Insurance – Innovation & Entrepreneurship in Insurance

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