The insurance industry buzzword for 2016 and beyond will be ‘insurtech’, according to Martin Pluschke, executive in residence for ERGO at Startupbootcamp InsurTech.
Pluschke described digitalisation as only the tip of the iceberg. He noted that the insurance industry condition has changed and that more change is happening right now.
The growth potential of the future is based on digital business models. He suggested that when companies are producing a digital product, they have to ensure they are doing the right thing, the right way.
He added that old thinking is no use when it comes to digitalisation and that the industry will have to think new and be creative, which will give them the right mindset and the right attitude to produce a digital product.
Pluschke explained that if the industry ignores new companies and start-ups, then it is ignoring the big potential they offer. He noted that the permanent search for the next big thing is what makes these start-ups interesting.
According to Pluschke, two words that are killing innovation are ‘prove it’. He believes that the insurance industry has a lot to learn. He explained: “We need to make decisions carefully. The biggest risk at the moment is taking no risk because it is the core ability of the business insurance company.”
He added: “The best advice I can give is, when you find a start-up, and you’re really convinced about it, place it in strategic share.”
“You are allowed to look in their books to help make a decision. Do not integrate the start-up with your company business admin. It will ruin it. Let the start up have control.”
He continued to sat it’s not all about the technology; it’s all about the people. “We need people who are not limited in their thinking,” he said.
However, he added: “On the other side, the company has to ask themselves how it can handle trouble makers and how much it can endure. It’s not about technique and processes its about how can we make our company attractive to these people.”
The industry is still in the learning stage of the technology curve, Pluschke concluded. He suggested that the first step in digitalisation is change, however he added that this will be a long process, which could take five to seven years.
