Behind the scenes, insurance providers use technology that customers don’t see. They have traditionally been conservative in their technology choices. But now, insurance companies openly invest in advanced insurtech. As well as the startups behind it. And it’s becoming their way to compete and give a better service.Read more »
This is a guest post from one of our mentors, Petri Ekman. Petri is an experienced executive with a broad and in-depth experience in financing, financial and insurance products and risk management strategies for corporate clients. Petri’s current role is the founder and owner of Elevon Consulting Oy. There he focuses on advising companies in carrying out change programmes and setting up financing solutions.
In part one, I discussed the external factors forcing change upon the insurance industry. There is an obvious question that arises after. What is holding back insurance companies from changing their ways? Especially taking into account all of these looming threats on their horizon?
Again, I see a number of factors, many of which are universal, not insurance industry specific. Here is my list:
1. Non-life insurance is profitable
The non-life business is profitable today. That is because companies in a difficult investment environment have systematically cut their operating costs. And thus made their primary insurance business much Read more »
This is a guest post from one of our mentors, Petri Ekman. Petri is an experienced executive with a broad and in-depth experience in financing, financial and insurance products and risk management strategies for corporate clients.
Change Started Later than in Many Other Industries
During my 12 years in insurance, I used to hear numerous times the claims “there have not been any new products in this industry for 100 years” or “this is how we have conducted our business for 120 years, and so far things have been rolling rather nicely.” These arrogant-sounding statements were used to blunt ideas to get some change in, well, most anything.
In reality, a major shift had already taken place then. Many companies had started to drive down their expense ratios to improve the profitability of their insurance operation. Read more »