Like every economic sector, insurance providers are dealing with a collision of problems, including long-term economic uncertainty and a wholesale switch to home working for employees.
And that’s not to mention fears of the economic fallout of the crisis in terms of claims.
In such times, the temptation may be to pull support from mid- to long-term opportunities, such as digital transformation and InsurTech programmes – both in terms of services provided to customers, and internal initiatives, startup partnerships, and underwriting support for InsurTech companies.
Moves to put such initiatives on ice should be resisted, for the sake of the long-term health of the sector. That’s according to an announcement from industry groups the Tech Nation Insurtech Board and Insurtech UK.
“Innovation in the UK insurance sector depends heavily on the leadership of our major insurers,” says a joint announcement.
“They are the engine rooms that many of our best and brightest InsurTechs build their businesses upon, and they often underwrite the risks that allow our InsurTechs to innovate on behalf of customers.
“Many of our InsurTech firms are SMEs, now facing tremendous challenges as a result of Covid-19 and its impacts on the economy. They are also beacons for the future of the insurance sector and leaders in their own right, with a responsibility to ensure that the products and services they provide add tangible value for customers, particularly in these difficult times.”
Together, innovation and InsurTech “pave the way for the future of the insurance sector, and at this critical juncture, the sector must now band together and collaborate as best it can”, it continues.
The organisations ask industry leaders to commit to supporting:
- The active exploration of strategic partnerships with InsurTechs
- Mutual collaboration between InsurTech firms and insurers
- Investment into new and existing initiatives
- Communication between firms, to ensure that it is clear and timely, and as transparent as possible with respect to the decision-making processes around engagement, funding, and ongoing support.