A report by Capgemini and Efma has discovered that 50% of insurance customers are willing to consider coverage from digital-based firms.
According to Reinsurance News, the World InsurTech Report 2021 detailed that InsurTechs and big tech players and leveraging ‘significant capital inflows’ to boost technological development and fuel innovation – something that putting pressure on incumbent insurers.
The report detailed that between 2018-2020, the top five tech companies and a large unnamed manufacturer that offers insurance services added almost 2.5 times the total market capitalisation of the top 30 largest insurers globally in 2021. By the end of 2020, the total market cap of listed InsurTechs surpassed $22bn.
Capgemini Financial Services and CEO and group executive board member Anirban Bose said, “The insurance industry is evolving, the keyword for its future is modularity. Insurers must be prepared to tackle a broad range of future scenarios.
“Modular offers, systems and organizational structures will be indispensable to creating a robust and responsive value change. In the coming years, industry players will be defined by their strength within a hyper-specialized value chain, and insurers will increasingly become orchestrators.”
Efma CEO John Berry added, “As traditional insurers expand their ecosystems to remain competitive, they must increasingly consider the value achievable through trusted partners, including BigTechs, InsurTechs and non-traditional players like original equipment manufacturer.
“The numbers clearly suggest that exponential InsurTech growth is here to stay, so delivering superior customer CARE is essential. Future success in the industry will depend on players’ existing capabilities across the value chain, willingness to invest, and desire to own the customer relationship.”