The Future Trends Framework
The New Insurance Value Chain
The greatest level of activity in insurtech is focused on the front end of the value chain, where new companies are leveraging expectations and capabilities to change traditional insurance distribution. They are focused on making it easier for customers to compare features and prices and get quotes and, for some of them, actually purchase a policy. This first group (in the graphic below) consists of insurance-specific online agencies and comparison sites. A second group exemplifies the blurring of channels across industries, where well-recognized non-insurance brands are getting into distribution arrangements with partnering companies and using their affinity and reach to extend insurance to broader marketing.
The second area of focus is disrupting parts of the value chain with new capabilities and solutions. The first group in the graphic below allows customers to get quotes and manage all of their policies, from multiple companies, on digital devices such as a smartphone. The second group applies new platforms and data to specific parts of the value chain like pricing, claims and underwriting
This next category includes both new and established companies that are integrating access to insurance within their offerings, rather than having insurance as a stand-alone product or brand.
Finally, in this category are the new business models and companies that are looking at the entire value chain, creating completely new insurance business models operationally, financially and competitively.
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