Should insurers invest in becoming an IT organisation?

As the world marches towards modernisation, industries across the board are facing the pressing question of how to adapt and stay relevant in an increasingly digital landscape. This shift is particularly pronounced in the insurance sector, where the demand for greater diversification of products and services is reshaping traditional business models. One of the key dilemmas facing insurers today is whether to invest heavily in transforming into full-fledged IT organisations or to concentrate solely on their core competency of crafting insurance products.

This quandary raises fundamental questions about resource allocation, innovation, and the future direction of the insurance industry.

Speaking as part of FinTech Global Academy’s esteemed Professional InsurTech Certificate, John Pyall  – Head of Underwriting and Product at Great Lakes Insurance SE – weighed in on the topic, calling insurers to utilise caution when considering diversification in this technological age.

Pyall said, “If we look at examples in other industries, and think about Apple in the telephone market, consider their approach to their product. They do not manufacture their phones; instead, they collaborate with partners to procure the necessary equipment. This strategy allows them to stay current in an ever-evolving industry landscape.

“While insurers have heavily invested in this area, it’s crucial to recognise that the industry is constantly evolving. Thus, collaborating with adept partners who understand our needs and can adapt quickly is paramount.

“It’s not just about financial investment; we must also reflect on our organisational culture. Insurance tends to be risk-averse, and while we embrace innovation, we may not always adopt revolutionary changes readily. Partnering with external experts who offer fresh perspectives can be invaluable in navigating these challenges. So, while we are committed to investing, it’s often more beneficial to engage the right stakeholders to support us in this endeavour,” he explained.

To listen to the whole presentation, enrol in the Professional InsurTech Certificate.

About the Professional InsurTech Certificate:

The Professional InsurTech Certificate course offers a comprehensive and practical exploration of Insurance Technology (InsurTech) for professionals operating in the insurance industry. With a focus on practical applications, the course covers vital topics including the fundamentals of InsurTech, adoption strategies for insurance companies, regulatory perspectives, data analytics, customer engagement, claims processing, risk assessment, and emerging technologies like AI and ML tailored specifically for the insurance sector.

Distinguished by its holistic approach to the InsurTech landscape, this course integrates real-world case studies with insights from leading InsurTech innovators and senior leaders from insurance companies.

You can enrol here.