Capgemini Press Release // World InsurTech Report 2021

Unprecedented access to capital investment fuels InsurTech and BigTech maturity and customer adoption - Seite 2

Digital technologies make the difference for new age players flush with investment capital
InsurTechs are leveraging the inflow of investor capital to further improve their CARE offerings through digital technologies, including AI/predictive modelling, advanced data analytics, API/open insurance and IoT/connected devices. InsurTechs are mindful of customer expectations and, while convenience has been at the center of InsurTech propositions for some time, priorities are now shifting towards reach. Although incumbents are experiencing clear data and analytics challenges (only a quarter of insurers are confident in their data handling abilities) they are not idle. To circumvent and overcome these limitations, many traditional insurers are buying and partnering with new age digital players to enhance their capabilities and value proposition as part of the CARE equation, with a special focus on reach.
                                                         
“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,” said Anirban Bose, CEO of Capgemini’s Financial Services and Group Executive Board Member.  

Insurance is moving from product selling to customer CARE and protection, and as the lines between insurance industry participants blur, the report predicts two scenarios emerging enabled by continued access to capital:

1. Embedded insurance as a value add within third-party ecosystems: Coverage is embedded at the point of sale or point of service, becoming virtually invisible. The business model evolves toward a B2B2C proposition, where ecosystem partners control customer relationships.
2. Added value at the core of complex offerings: Insurers evolve from selling products to CAREing for customers through predict-and-prevent propositions enabled by AI and analytics.

“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 (OEMs). 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,” said John Berry, CEO of Efma.