6 ways data analytics is transforming insurance providers
Share
Copy link
Technology is combining with traditional industry practices to create: insurtech. How is data analytics transforming insurance providers and platforms?
“There’s not going to be a single industry that will be disrupted more by the contextual data revolution than insurance,” said Julian Teicke, co-founder and CEO at Wefox Group.
What challenges are facing the insurance industry?
Complacency, according to Julian, represents the biggest issue facing insurance. He painted a stark picture of an industry in stasis.
To some, insurance – in its current form, at least – is a mechanism for delivering shareholder value, but not consumer value. As Julian put it: “For the last 200 years, insurance was the best business model in the capitalistic world.”
Julian believes that, rather than trying to grow, insurers try to wring more profit from their existing customers with higher premiums and opaque product bundles.
Incumbent insurers, he argued, have little incentive to change, as the model is not only profitable, but reliable.
“You pay back a little bit less to the customer than they paid in,” said Julian. “So, essentially, it’s a money multiplication machine.”
“There’s no urgency whatsoever [from large insurers],” he continued. “A big revolution is happening beneath the surface, and it’s going to be a big one for the incumbents.”
There’s not going to be a single industry that will be disrupted more by the contextual data revolution than insurance.
– Julian Teicke, co-founder and CEO at Wefox Group
Six ways insurtech will transform insurance
Julian outlined what he believes are the six advantages insurtech has over existing models:
Want to learn about the worlds of business and tech? Join the Web Summit newsletter to keep up to date.
