One of InsurTech Hartford's goals is to help increase awareness about problems facing the insurance industry to enable increased opportunities for start-ups. On April 19th, Anthony Mongiello came to Innovate Hartford to talk to us about Digital Disruption, and what it means from a carrier's perspective.
According to Anthony, digital is all about the customer. Focusing on human interaction is key. While it is easy to see InsurTech and Digital as all about the new, cool technology of digital times, such as blockchain, AI, and IoT, organizations need to find ways to add value to their customers.
One of the key factors is customer preparedness. How prepared is the customer for change? In the image above, if blue dots represent digital ideas and the orange dots represent the level of customer preparedness, companies need to focus on increasing customer preparedness. Does the customer know he or she has a problem that needs solving? Education may be necessary to go along with the change.
Carriers need preparedness, too. Anthony spoke about the importance of the organization's culture and how it needs to evolve. Organizations adapting to digital are learning to fail fast, iterate solutions, with a focus on diversity & inclusion. Anthony referred several times to running "bimodal" - while the organization continues to run business-as-usual, someone needs to focus on innovation, experimenting in short, rapid cycles.
Anthony compared digital times to recent lessons learned from the dotcom days. We know how that played out. Companies that focus on their customer, not technology, will have more success in the long-run.
The dialogue that followed the talk centered around distribution, disintermediation, and the future of insurance. Will the industry ever be all digital? Very unlikely, and if it is, not for a long time. Speaking of time, only time will tell if the transactional, insure-a-thing approach backed by AI-based claims, paid for on a usage basis, will hold-up to regulatory requirements (now and as they change in the future), and the inevitable - lawsuits.
One more important lesson of the night - if you are ever in NYC, do not take a gypsy cab!