Almost $6 billion has been invested globally in insurance startups in the last five years, but expectations about their disruptive potential are often exaggerated. CIOs should not be passive; insurtech failures present opportunities to complement their innovation and digitalization strategies.
Impacts and Recommendations
- The insurtechs' focus on customer experience doesn't generate new market demand, but it can complement the digital strategies of insurance CIOs
- Customer inertia will undermine the value proposition of many insurtechs, but insurance CIOs can create a sandbox environment for prototyping and experimentation
- Most insurtechs underestimate the costs needed to penetrate markets, which will create investment opportunities for insurance CIOs
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