By FINTECH Books Contributor, Valentino Ricciardi
InsurTech is the new cool word within the vocabulary of the financial services’ technology innovation movement. It mimics the term FinTech that is already established in the financial services. A relevant aspect to point out is that InsurTech has been already considering an area of business so promising
to deserve a self-standing term that is complementary (and not overlapping) to FinTech and that already identifies a clear ecosystem with a specific scope and playground.
However InsurTech does not have yet a clear, agreed and established definition.
A definition of InsurTech should cover different concepts that goes well beyond the idea of combining insurance and technology to include the social role of insurance in mitigating and reducing risks, the native customer centric approach as well as the potential that technology has to enable incumbents’ new business approaches and disruptors’ new business models.
On the other side, the taxonomy of the InsurTech domain needs to include all the different elements of innovation that will influence the insurance space. Such a taxonomy should not only be able to identify an InsurTech startup within a framework including traditional areas such as LoBs, Value Chain, Distribution Model, etc.. but should also be able to reflect in the categorization of each area the innovation that technology is bringing.
In fact, traditional categories fail to account innovation such as chatbots and artificial intelligence that enable a H2C (Human to Customers) approach in the distribution model or advanced analytics that are getting their own space in the Insurance 2.0 value chain. A definition of InsurTech should be its own Manifesto. It should include all the innovative elements of disruption and oriented to the future of the industry to influence and shape the vision of all the innovators approaching the insurance business.