Important reading for Insurers in Nigel Walsh's review of his 2016 Insurtech forecasts and new 2017 ideas.
I would add one other major impact.
The industry standard insurance ERP platforms like Guidewire, SAP, 1Insurer, Systema etc I liken to the legacy CRM products now displaced by Salesforce.com. They do anything you want but complex needing:-
- armies of consultants to deploy and maintain
- large capital and revenue budgets
- maybe worst of all just so slow to deploy and iterate.
What's required is a Salesforce.com equivalant that can be implemented fast without having to throw out the current legacy systems.
Simple, secure, scalable URL linkage between the new cloud platform and the legacy back-office systems.
Not just for the niches, like Lemonade, but for the bread & butter insurance like:-
- Vehicle Insurance- private, business & commercial
- Building & Contents- private and commercial
- Pets
- Travel
All on a transaction based licensing model e.g. per claim processed so as to be commercially viable.
I predict some of the largest global insurers will implement this strategy in 2017 whilst laggards will wait on the sidelines only to dive in during 2018.
