Insurtech talks the talk, but will it transform the industry?

Technology companies at the forefront of the so-called insurtech revolution are talking the talk, but there is very little of substance to back up their words, according to the online readers of Intelligent Insurer.

More than half (51 percent) of the respondents to II’s annual renewals survey said the hype around the insurtech revolution was being driven by concepts, rather than tangible products that are having a measurable impact on the reinsurance industry.

While insurtech is a frequent topic of conversation around the water coolers and conferences of the reinsurance industry, it appears that reinsurance professionals are rather sceptical about the impact it has had, and will have, on their business and their jobs.

A further 19 percent said insurtech has had no impact on the industry at all. That means fully 70 percent of the respondents to the survey feel insurtech has yet to make any impact—the only difference being expectation of whether it will in due course. One respondent said it was “obvious” that insurtech has not had an impact yet.

The number of insurtech enthusiasts was relatively small, with only 7 percent of respondents predicting it will be transformative in the industry.

One of them argued technology will inevitably find a way to penetrate the business, “like water through cracks in a rock”. The respondent said: “The opportunity for capital to flow more easily will succeed over time. It always does!”

Nearly a quarter (23 percent) believe insurtech is already revolutionising certain processes for the better, although one respondent said: “Adoption and ease of use are highly uneven, and are likely to remain so for several years.”

Another respondent also resorted to aquatic imagery, saying: “Reinsurers need to understand risk being presented in a more fluid way.”