The Global Insurance Accelerator, based in Des Moines, Iowa, has just participated in the fourth Global Insurance Symposium. Two of the big takeaways are that the insurtech movement is maturing, and there is indeed convergence happening between the traditional industry and the entrepreneurial startups that have new ideas and business models. For the insurance industry to advance, there must be a great deal of collaboration between all types of participants in the marketplace. The GIA represents a great example of how this collaboration can be facilitated.
Since its inception, the GIA has promoted collaboration instead of disruption. There is a clear focus on insurtechs and their potential to bring transformative ideas to the industry, but not with the objective of displacing the existing industry players. The model is designed to look for mutual benefit for insurers and insurtech startups. Insurance companies, regulators, investors, academia and other industry experts like SMA are actively involved with insurtechs to guide and support them as they mature.
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The idea is that there is a win-win situation when the strengths of the traditional industry (capital, regulatory experience, scale, risk knowledge, etc.) can be blended with the strengths of insurtechs. The startups bring an entrepreneurial spirit, speed, innovation and new business models to the game. The best ways to partner and take advantage of these combinations require hard work and are enhanced by facilitating organizations like the GIA.
As the transformation of the insurance industry continues, more and more insurers are seeking to actively partner with insurtechs, leverage emerging technologies and institutionalize innovation. At the same time, the insurtech community in general is maturing and has a greater understanding of the insurance industry and the need to collaborate than it had a couple of years ago. This evolving formula creates the potential to provide new ways to deliver the customer experience, improve operational efficiencies and assist customers in risk management and wealth accumulation, resulting in success for insurers, insurtechs, and other market participants.