aNALYSIS - ValueMomentum
IF YOU’RE NOT AVAILABLE ONLINE, DO YOU EVEN EXIST? By Abhijeet Jhaveri
T
here’s been reams written about how digital is impacting every industry and every business. Many have been disrupted and yet more are undergoing disruption. Even the property/casualty insurance industry is undergoing a huge transformation and is on eve of disruption! Think you’ve heard it before and you remain skeptical?
A
BOUT THE AUTHOR: Abhijeet Jhaveri is Chief Marketing Officer at ValueMomentum and leads ValueMomentum’s softwareas-a-service business targeted at the MGA, Program Administrator and Coverholder markets. Abhijeet and his team works with MGAs, Program Administrators and Coverholders to deploy ValueMomentum’s iFoundry rating software with support for ISO, NCCI, AAIS and proprietary rate plans and extend these to agents, customers and employees with ValueMomentum’s BizDynamics Digital Experience Solution and App2Data ACORD forms processing Solution.
26
DECEMBER 2017
Before you being to roll your eyes, read on! In this article, written for MGAs and Program Administrators, I have shared: 1. Exactly how Digital “IS” impacting your space 2. How you are uniquely positioned to take advantage of this trend 3. What you can do right away to transform your business. Well capitalized Insurtechs want a large bite of the pie! Let’s follow the money! According to AON’s “Global Insurance Marketplace Opportunities, 2017 Insurance Risk Study”, since 2012, a cumulative $14Bn has been invested into over 550 Insurtech startups. And the pace has only been accelerating with around $9B invested in 2016-17. Disruption is occurring across different dimensions, ranging from product innovation
TABLE OF CONTENTS
(Metromile, trov, Slice, Bunker), distribution (thezebra, Lemonade, Coverhound, the zebra), underwriting & claims using Internet of Things (Lowes, ADT, Leakbot), drones, telematics and other “smart” assets. Digital technologies are the core of the disruptions being led by these startups. They are using: • •
•
Location data to provide you a contextual experience API-based integration with third party data sources to reduce the number of questions they ask the customer and reduce the amount of time spent in issuing quotes or settling claims Demographic data to target the audience that would be a good fit for their products, among other similar digital technologies
SPECIALIZATION IS CRITICAL TO COMPETE IN THE DIGITAL AGE So how are you going to handle all this competition – from technologybased innovators with serious capital backing them? I believe MGAs and Program Administrators are uniquely positioned to survive and thrive in light of this potential disruption. Specialization – both with See Are You Available Online? Page 32 www.chart-exchange.com