How Legacy Carriers Should Respond To Insurtech

With innovative technology springing out of venture-funded startups and making its way into monolithic industries like banking and healthcare, it was only a matter of time until tech-driven disruption came for the insurance industry.

Emerging InsurTech companies have now made themselves comfortably at home, leaving legacy carriers to decide how to approach the newcomers: resist, adapt or integrate?

Let’s examine what InsurTech companies can do for the industry, how legacy carriers can evaluate them, and what the future of insurance will look like.

InsurTech companies are making full use of many of the technologies — artificial intelligence, blockchain, drones, telematics and more — that are already disrupting a variety of other industries.

Several of those technologies will see novel implementations in insurance, such as using blockchain to create smart contracts for cargo ships, or sensor drones helping to determine parametric insurance for farms based on rainfall analysis.