Pandemic prompts more insurers to collaborate with Big Tech – International – Insurance News

The post-COVID landscape could see increased collaboration among insurers, insurtechs and Big Tech, Capgemini says in a new study.

The consultancy says more than 60% of insurers and insurtechs interviewed for its annual World Insurtech Report expressed interest in working with technology firms such as Facebook and Google.

Capgemini says the findings reflect the industrys awareness that it needs to lift its digitalisation efforts.

During the pandemic technology players have raised the bar in terms of operational crisis handling, earning even more customer trust as a result.

Whether subliminal or explicit, consumers superior Big Tech experiences are affecting the insurance industry, the report says. In every business in which success depends on consumer confidence and a wealth of customer data, Big Tech set the tone for defining the customer experience north star.

Customers cant unsee their Big Tech experiences.

The report says COVID-19 has exposed gaps around the technology, systems, products and processes of both insurers and insurtechs.

Responses from insurers and insurtechs indicate they intend to focus on improving the digital experience and crisis-proofing processes.

More than 80% of insurers and insurtechs say responding in real-time to client needs is a key focus area, and more than 90% say they want to improve their crisis-proof processes.

When it comes to digital experience, 94% of insurers ranked it as a priority and 89% of insurtechs expressed similar thoughts.

Capgemini says the pandemic has upped the ante for both insurers and insurtechs.

Insurers have to look beyond other insurance companies as their competitors, and instead include Big Techs and other new non-traditional players, which are often offering a superior customer experience,Financial Services Strategic Business Unit CEO Anirban Bose said.

Forming scalable relationships with insurtechs will help insurers digitise faster and more efficiently, deepening their customer relationships and helping them to fend off these new entrants.

For insurtechs, their biggest challenge is sustaining business operations while effectively managing more demand than they have ever seen.

The World Insurtech Report is based on insights from surveys and interviews with more than 175 senior executives from insurers and insurtechs in 26 markets. The markets include Australia, the US, Japan, Hong Kong and several European economies.

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Pandemic prompts more insurers to collaborate with Big Tech - International - Insurance News