My humble view on insurance transformation [part II: the tech movement]

Tech movement … too cute to be ignored!

Part 2: The tech movement

It is difficult to tell where it exactly started. Was it the internet? Well, it doesn’t really matters at all. What important is, that progression never happens linear and continuously. It happens in phases and steps – and you never know how long the phase is and how large the steps are. However, each step lifts human society to a next level. Just think about the first tools for hunting, the invention of the steam engine or computers.

We are just in the beginning of a new progression, the digital revolution, which started – of course – within the technology area and then spread to other industries like retail.

This early phase of the revolution is for example the rise of google and amazon.

In the very first years, internet was like a one way street – like television and radio before. We sat in front of our computer and consume. We consume music and news and so forth. Facebook and other social platforms change the game a lot. And why has this been so successful? Well, people love to chat and to socialize. They love to share news and gossip.

Facebook & friends gives the platform.

Internet and digitization creates a world without borders and frontiers. Territorial borders are getting more and more irrelevant – to the suffering of dictators and mediocrities. The world is on its way to unite.

Almost everything and everybody is digital – but wait, what about financial services?!? Well, some say the ATM has been the first and last real invention of the banking industry. It is hard to believe that the digital revolution stops at banks and insurers. The new age offers new sales channels, new marketing and so much more! The tech movement (FinTech) affects the entire value chain from back office to front office. It gives birth to new products and new processes.

InsurTech is still in its infancy. Nevertheless, the year 2017 is the year with accelerated activities in this area.

New players – up to the so called full digital insurer (i.e. full risk carrier) – are preparing or have already entered the market. Just think about getsurance (Link) and WeFox (Link) in Germany.

The industry is in an upheaval and haven’t yet fully deployed the full potential like artificial intelligence, data analytics, blockchain and so forth.

It is hard to believe that an entire industry or the idea behind it will be disrupted but some companies and current best practice will be. For sure!

Read here the introduction to my series of blog posts and here part 1. My next blog gives insights about the present InsurTech movement.