Page 35 - Insurance Times November 2021

impact made on the insurance industry to arrive at, a organizations have already made the required learning
conclusion, as to whether Insurtech is really a disruptor. The and are making many changes to their work-processes.
following determinants, in my view, would at least be required Determinants are also required to gauge the extent of
for such an assessment: this change.
Y It is yet too early to say how much of the Insurtech
Y Any industry becoming more competitive is a positive
presence has contributed to a significant premium development as it leads to new product-innovation,
growth or increase in turn-over for the insurance
makes products available to a wider consumer-base and
industry. Some estimates say that Insurtech is likely to overall increases price-competetiveness which is good
increase their premium beyond USD 556 billion by 2025, for the consumer. So a determinant is also required to
a 123% leap from the USD 250 billion in 2020. But more assess how competitive has the insurance industry
data over a period of time, is required to arrive at how become after the incursion of Insurtech.
much increase in overall premium figures, this translates
into. More data is also required on changes in growth
It would be acceptable to experts, in my opinion, if an
and profitability indices, before arriving at any opinion. independent rating organization with established credentials
Y Insurtech has as of now, increased customer satisfaction were to rate the new and also the older and established
and raised expectations with their new digitized organizations, on these criteria, to arrive at impartial and
offerings. Many of these products are low cost products reliable findings for the benefit of the entire industry. Only
which have increased affordability and also brought in then would it be possible to assess the impact of Insurtech on
inclusivity, as already described earlier. the insurance industry and understand how much of
With the increase of the customer base, awareness of disruption have they actually caused.
insurance is also growing globally. This is definitely
beneficial for the insurance industry. It is to be hoped Conclusion
that in the long run this will only increase penetration Can it now be argued that Insurtech with their innovative,
and inclusivity. agile and digitally advanced work-processes are really being
But it would of course, be necessary to go beyond the over-rated by being called disruptors? While they must be
business figures and other such general trends and also evaluated dispassionately, rather than with euphoria, for
reflect on the impact of Insurtech on the basis of other bringing a breath of fresh-air into age-old work and thought
factors such as changes in affordability of products, processes, they have not yet taken the industry by storm,
customer satisfaction, spread of insurance awareness, and brought in sweeping and radical changes, as it were.
increase of penetration and inclusivity. These would be
the other important indices, findings on which would be The insurance industry rather seems to be bestowing on them
required to come to a definitive conclusion. the role of facilitators as other organizations are drawing on
their technological offerings and other learning to revamp
Y One would also need determinants in respect of whether and modernize themselves and increase their customer-base
there has globally been any radical or significant change and turnover.
in the market-structure of the insurance industry. There
are no Insurtech monopolistic, duopolistic or cartel-like
So a balanced view about Insurtech appears to place them
market-structures emerging anywhere in the world, at somewhere in between the two categories of disruptor and
least at this point of time. But such changes may take
facilitator, for the time being.
more time to crystallize.
Y Data does not support the contention that there has References
been a major adverse impact after the incursion of
O What is Insurtech and why it is the future of the insurance
Insurtech, on the traditional insurance industry in any
sector. Blog post dated September, 20th 2020 available
country. No old legacy insurer has been forced out of the on https://www.electronicid.eu/en/blog/post/what-is-
business, as yet. insurtech-future/en
Rather, Insurtech has utilized emerging technologies, O 10 Reasons Why InsurTech Is Going to Be Important. Blog
which have been described at length, to revitalize this post dated July 1st, 2021 available on https://
sector. Old legacy businesses are slowly converting their www.prove.com/blog/10-reasons-why-insurtech-is-going-
methods as their survival is at stake. Other agile to-be-important. T

The Insurance Times, November 2021 35