gaps and address new markets that emerge in today’s sharing
economy. However, I don’t think they will ever fully replace the
traditional carriers. There will not be an Uber for insurance (at least
not like Uber as we know it today, which decimated the traditional
taxi business). Uber offers a short-term, low risk service. Worst
case, you will either be overcharged, or arrive late to your meeting.
Insurance, on the other hand, addresses a different need; it is an expensive, high risk service. So, insuring your iPhone via a start-up?
Yes. Insuring your home? Not likely at this stage.
We see many insurtech start-ups that propel the digital
revolution, such as Sapiens’ partner, Idomoo. By enabling
insurers to create personalized, streamlined and simplified
communications with customers via engaging and customized
videos, they help accelerate digital transformation.
RYU: I think there are insurtech firms that feel they are going
to overturn this dinosaur of an industry because they have great
new technology. That’s naive and begging for a comeuppance if
you say silly things like that. There are great ideas about creating
a more compelling digital user experience, how to apply sophisticated data analytics techniques, and how to rethink insurance
products. That’s all awesome stuff. I just think most of those
ideas will find their way into existing insurers’ hands and hopefully elevate the industry. I don’t think they’ll come in the form
of an Amazon or an Uber and turn everything upside down.
GLAZER: I see two paths for most insurtech companies. One is
they will build creative products and larger players will acquire
them. Or, some of the insurtech players might join forces to offer
something that fills a gap for the insurance industry whether with
new features, functions or approaches to problems faced by insurers that go beyond what the major providers are doing today.
JACKOWSKI: Some of these insurtechs are trying to optimize—
through the use of technology—specific points in the overall
insurance value chain. Insurers and large MGAs are applying new
technology and processes. Many of the areas involve distribution
and automated underwriting and they work with other solution
providers to augment core capabilities. Some are positioning themselves as service providers and offer complementary strategies.
That is why we invest heavily in our alliance program in terms of
partners we can work with to bring capabilities to market. We have
created an extensive API set to allow partners to integrate more
effectively with our solutions in the marketplace. We continue to
position ourselves so if we acquire some companies that’s great, but
if we partner with some—and we enjoy some great partnerships
with companies like Hyland OnBase, IVANS Insurance Solutions,
and Verisk Analytics—we can have these complementary relationships and work together to provide solutions to our customers.
OSSIE: We see the issue differently. We think the model has
flipped. The number of Millennials
coming into the market makes it
the No. 1 buying contingent. As
the level of customer expectations
change, so too do systems of
engagement; as analysis changes so
do systems of insight. The systems
of record, core systems, are table
stakes. Companies will look more
to the $5 million and $10 million
projects to transform and shy away
from $50 million and $80 million
transformation projects that take
several years to complete. Early
on, we got into the Greenfield and startup movement as large
insurance companies started initiatives and provisioned with a
cloud-based policy management system to bring new products
or reach new market segments quickly. We think the time is
ripe for some real disintermediation.
MEHTA: We believe there is opportunity for ecosystems of
partnerships between some of the established players and
Insurtech companies. We recognize some innovative ideas will
come from insureech companies and a company like Majesco
will add insurance expertise to provide holistic solutions to
DENISE GARTH: Insurtech
technology startups are building
innovative capabilities and providing
new data sources that can give a
different engagement process or an
underwriting process. Integrating
with them allows our customers to
pick and choose additional capabilities. If you are serving Millennials,
you might want to work on leveraging things like Facebook Messenger.
Recognizing those capabilities allows
a differentiated solution and we learn
how to innovate within our solution.
ITA: Do you believe there are too many compa-
nies operating within the core solutions space?
Will any of the new players in the market rise
up to challenge the market leaders?
GLAZER: There are still a very healthy number of players in the
core systems space. Some can survive and indeed do well with
a few customers. In my mind, there are three major competitors and a slew of smaller companies that offer core solutions.