It is great that corporate insurers are starting to wake up from their slumbers to face down the threats from the wave of disruptive startups.
However, what this demonstrates is that corporate insurance IT departments have fallen a long way behind the curve in embracing the need for agility and speed, to respond to the markets and businesses they serve.
Many years ago organisations wanted control of their IT, so used to build their own laptops and write all their own applications in COBOL and FORTRAN. Those days are long gone, thank goodness. But the principle still applies.
Today, innovation happens almost exclusively in the front office. IT department should be creating a 2-Speed IT architecture, which is slow and conservative in the back office, with a front office that is already agile, fast, unified and onmichannel with applications created through model development, not writing lines of code.
That way the guys in IT become heros, rapidly delivering the new and innovative requirements that are increasingly pouring into the business every day. Otherwise internal IT just simply fails to keep up.
So, if the investment is being made as this survey suggests, the big unanswered question is this: Is it being made in the right areas, to create the right IT architecture to become Innovative or just building tactical solutions to strategic challenges?
Despite “genuine pressure” from the start-ups that are snapping at their heels, corporate insurers are closing the gap on insurtechs through heavy investment and diversification of strategies, a new report has found. Since 2016, over $1.97 billion (approximately £1.52 billion) has been invested into insurtech globally, with the top 10 corporate investors pumping on average $91.3 million each into insurtech ventures. It now takes next to nothing to launch a start-up, and the investment market (both venture and corporate) is pouring money into new, emergent and often disruptive businesses across the entire ecosystem,” “This is changing business as we know it. The corporate mainstay is now under genuine pressure to innovate and diversify strategies or risk overnight irrelevance from fierce competition with an unprecedented ability to scale,” he continued.