Michael Shashoua, senior editor of Digital Insurance, reported on developments from ITC Vegas Oct. 31-Nov. 2, 2023.
ITC Vegas, day 2
November 2, 2023 1:03 PM
Tanguy Catlin, senior partner at McKinsey, and an expert in digital insurance, has seen the balance between insurtechs and insurance carriers change over the course of recent ITC Vegas events in the past few years, he said in an interview.
In 2020 and 2021, insurtechs seemed to see carriers as backwards in their technology, and beholden to them for whatever tech improvements they offered, Catlin said. But in 2022, the balance had shifted to the carriers to pick and choose what insurtechs they wanted to invest in or sign with as clients.
Now, Catlin added, the two are starting to realize they need to work together as partners. But both are finding a new third party in the mix – "big tech," he said, in the form of major technology providers such as Google, Amazon and Microsoft, with Gen AI and cloud computing resources, according to Catlin. These giants are making their influence felt, he said.
In 2020 and 2021, insurtechs seemed to see carriers as backwards in their technology, and beholden to them for whatever tech improvements they offered, Catlin said. But in 2022, the balance had shifted to the carriers to pick and choose what insurtechs they wanted to invest in or sign with as clients.
Now, Catlin added, the two are starting to realize they need to work together as partners. But both are finding a new third party in the mix – "big tech," he said, in the form of major technology providers such as Google, Amazon and Microsoft, with Gen AI and cloud computing resources, according to Catlin. These giants are making their influence felt, he said.
GEICO has reset its portfolio channels to meet customers where they are, Vestal said. The insurer aims to present policyholders with a journey using their data, albeit in a privacy-protected manner.
"Insurance is a high cost business," Vestal said, "but that means there's high opportunity for cost savings."
Since auto insurance customers tend to shop carriers more than for other types of coverage, there are certain "moments that matter" for these customers, according to Vestal. "If you're doing well capturing and flagging those moments and creating journeys around them, great," he said. "If you can take and distribute that across the enterprise, that's even better."