The Perils and Promise of Insurtechs
Funding is up for insurtechs, but the number of new entrants is declining.
Because of their legacy and sheer size, most insurers' cultures make it difficult to act with agility. The nimble, focused nature of insurtechs can help insurers' respond.
Insurtechs typically fall into one of three categories: distribution, risk-bearing carriers or focused service providers filling holes in the value chain.
Faced with a new work environment and changed customer expectations, insurers have looked to insurtechs for capabilities such as large-scale text messaging and distributed document management.
For some insurers, working with insurtechs allows them to pursue innovation without disrupting core operations.
