TAL’s general manager for innovation, Dan Taylor, told Risk Adviser that the slow take-up of new technologies within life insurance, relative to other financial sectors, is due to its high regulation, as well as the complexity of the industry and the products it deals with.
Mr Taylor said the capital requirements on the insurance sector also make it difficult for start-ups to come in alone.
“Within life [insurance], it’s just the long-term nature of our products where we can sign up a new customer but it might be 20, 30 or 40 years before a claim comes through,” he said.
“That makes it very complex and difficult for a start-up with a new bit of technology just to jump into the industry.”
Mr Taylor also cited the importance of the claims experience itself as a factor behind the slow InsurTech adoption.
“When we do have a claim, it’s at a really difficult and important time for the customer and they absolutely need reliability and confidence that we’re going to be there,” he said.
“They often need that sort of human factor, if you like, that can really bring and understand some of the emotional context and helping and rather than just dealing with more automated machines or a digital context, whatever that may be.”
Risk Adviser reported on comments from Neosurance co-founder and chief executive Andrea Silvello last week, saying insurers do not seem able yet to take advantage of the opportunities around InsurTech.
“The lack of a comprehensive vision when it comes to the channels used and the integration between them is inconceivable and represents a major handicap that customers surely perceive,” Mr Silvello said.
Hmmm I totally agree, but when you have IT within insurers and AFSLs that actually don’t support technology it’s a bit hard to “innovate” – there’s that word I hate – partnering with AFSLs and Insurers is key for a FinTech