Over 60% of InsurTechs and insurers are looking to collaborate with BigTechs, as they look to keep up with changing customer demands, a new report claims.
The World InsurTech Report 2020, which was published by Capgemini and Efma, claims that insurers need to explore new ways of building capabilities that need the new demands of consumers and BigTechs and non-traditional players enter the insurance market.
The Covid-19 pandemic has increased customer engagement and expectations and as BigTechs and other technology companies begin to enter the insurance space, the boundaries of insurance is blurring, it claims.
Capgemini CEO Anirban Bose said, “Insurers have to look beyond other insurance companies as their competitors, and instead include BigTechs and other new non-traditional players, which are often offering a superior customer experience,”
“Forming scalable relationships with InsurTechs will help insurers digitize faster and more efficiently, deepening their customer relationships and helping them to fend off these new entrants.”
Insurers and InsurTechs are noticing the appeal in working with BigTech firms, with over 60% stating they are interested in collaboration.
But on the whole there is a greater mindset of collaboration in the market. 67% claimed they wish to work with InsurTechs and 83% of InsurTechs reciprocate the feeling. Additionally, 85% of InsurTechs said they wish to collaborate with other technology platforms.
The BigTech companies have raised the bare for customer experience, the report claims, due to their real-time responses and intuitive customer care. Interest in buying insurance from a BigTech company only increased during the pandemic, with 36% of consumers willing to buy insurance from a provider of this type in January 2020, and increasing to 44% by April.
To improve competition against BigTechs, the report claims insurers need to focus on critical priorities such as supplying superior customer experience, crisis-proof processes, real-time response and more.
To read the full report click here.
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