Digitally-focused new players in the insurance industry are increasingly threatening the market dominance of traditional insurers in a dynamic that could ultimately force the incumbent players to become nothing more than risk carriers, the COO of Hiscox has warned.
While the traditional industry is digitizing quickly and taking advantage of opportunities presented by new technology and the use of big data, the sector might be moving too slowly in contrast with disruptive players.
“Traditional insurers have engaged in a deep transformation at a pace that is quite fast by their historical standards. But the question is if it is fast enough given the increasing gap with the exponential speed of technology and innovation,” said Florence Tondu-Melique, European chief operating officer at Hiscox.