Page 32 - Insurance Times November 2021

IS INSURTECH

REALLY A

DISRUPTOR FOR

THE INSURANCE

INDUSTRY?

Introduction There is a view that Insurtech is a disruptor. But is it really a
disruptor? If so, how much of a disruptor has it been so far?
A relatively recent phenomenon observed in the insurance
Moreover, if it is not really a disruptor then what is it? What
industry is the incursion of Insurtech. Insurtech or Insuretech,
made up of the English words Insurance and Technology, is has its contribution been to the insurance industry globally
the result of the confluence of digitization and disruptive and what and where are Insurtech entities situated?
innovation strategies in the insurance sector.
If one attempts to find answers to these questions then only
The insurance sector is closely related to the banking and can one come to a considered opinion on this matter.
finance sectors. As in case of the latter, the insurance sector
is also utilizing innovative techniques such as artificial What is a Disruptor?
intelligence, machine learning or big data to modernize and A dictionary meaning of disrupt is - disorder, unsettle, agitate
digitize the insurance sector. This has correspondingly led to or spoil. This conveys the popular meaning of the word-
the birth of startups, focused on offering this type of solution disrupt.
to create novel insurance products. This has strengthened
and consolidated Insurtech. Enhanced digitization of office
Unlike what the term disruptor popularly connotes, it has a
operations for the industry has also led to greater choice and positive and transformative ring to it, in the business context.
convenience for consumers.
To be a disruptor is to create a product, service, or a technique
of doing things which effectively displaces the existing market
About the author leaders.

Nandita Banerjee
Their impact on the system is positive since they challenge
Former Manager current organizational habits and procedures, to find positive
National Insurance Co. Ltd.
and enhanced alternatives. Examples of disruptive
32 The Insurance Times, November 2021