IBM: Without implementing insurtech, insurers are doomed to failure

A recent IBM report finds that insurers that either invest in or work with insurtech companies tend to perform better than insurers that do not.

The report, “Friend or Foe: Insurtech and the Global Insurance Industry,” surveyed insurance executives to understand the causes and consequences of working with industry-disruptive innovations.

According to the findings of the report, 81% of insurers surveyed said they either invested in or are already working with insurtech companies, and 57% of respondents believe that such collaborations drive innovation in the industry. However, 43% of surveyed executives consider such collaboration to be disruptive and rely on traditional business practices.

“Insurers who do not support the insurance solutions initiative may find themselves under threat,” the IBM report says. “This threat may come not only from insurance companies themselves, but also from more entrepreneurial insurers who use insurance services to expand their offerings and deepen the interaction of policyholders across channels, geographies and business lines.”

Insurtech— is the implementation of innovative solutions designed to maximize the effectiveness of using new technologies in the insurance market.

Source: UkrStrakhavania