FintechOS: Insurtechs pushing the boundaries on UX

Mariana Henriques, Product Marketing Director Insurance at FintechOS speaks to InsurTech Digital about the work of insurtechs to show legacy insurers the value of leveraging technologies like AI and machine learning to drive value for customers and support the growth of their own organisation. 

In what ways are insurtechs helping transform the face of insurance to a more digital proposition?

Insurtechs have a valuable role in the insurance industry, which has often fallen behind others in terms of digital transformation.

These companies push the boundaries of customer expectations on what “good” looks like and remind insurers of the importance of continuous innovation and improvement.

By showing insurers how state-of-the-art technologies like AI, machine learning and image recognition can be leveraged to generate value for customers, they support ongoing growth and innovation in the industry.

Insurtechs also make emerging technologies more accessible and easier to use, meaning insurers can adopt them more easily.

By taking on this supportive role, insurtechs encourage insurers to introduce new tools and platforms that they can sustain and build on themselves, using their existing teams and skills. This importantly supports long-term business growth.  

How are insurtechs able to foster digital transformation without disrupting the flow of daily business at legacy insurers?

Insurtechs can support digital transformation without disruption by integrating and working with insurers’ existing systems and helping them get more value out of them.

Many of these newer technologies can complement and augment existing capabilities, and avoid the need for rip-and-replace projects, which can be expensive, risky, and extremely time-consuming. 

By bringing together innovation from the insurtech ecosystem with their existing investments, insurers have the option to adopt new technologies at their own pace and scale according to their changing business needs.

In what ways can insurers modernise their legacy platform? Must they integrate an insurtech’s platform to succeed in modernisation?

There’s no one-size-fits-all model for legacy modernisation, so multiple strategies can be considered. The more traditional strategies include replacing existing systems, migrating new books of business to neo-core systems to work in tandem with legacy infrastructure, and hollowing out core system capabilities, replacing them with new, custom-built ones. 

However, these strategies often pose high levels of risk and investment from insurers and require them to slam the brakes on innovation, which most are unwilling to accept in the current climate.

In contrast, modern insurtech platforms, like fintech enablement platforms, propose a more gradual, less risky approach that provides continuous business ROI. 

Fintech enablement platforms allow insurers to take an evolutive approach to core modernisation, which is crucial to sustained long-term growth and innovation.

Insurers can keep innovating at their own pace, starting with point solutions, such as launching a new quote and bind journey or a personalised version of an existing product.

From here, legacy systems can be gradually decomposed and revamped with modern, composable business capabilities that integrate seamlessly with the rest of their IT estate, like deploying new policy administration or product definition modules to support new products and digital journeys.

This gradual approach allows modernisation to happen in a controlled-risk, cost-effective way while delivering continuous value to customers in the form of new products and digital journeys.

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For more insights from InsurTech Digital, you can see our latest edition of the InsurTech Digital here, or you can follow us on LinkedIn and Twitter. 

You may also be interested in our sister site, FinTech Magazine, which you can also follow on LinkedIn and Twitter.

Please also take a look at our upcoming virtual event, InsurTech LIVE, coming on 18th October 2023. 

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