As the digital ecosystem continues to grow , we ask experts how insurtech partnerships are changing the space
STRATEGY
PARTNER NETWORKS AND THE FUTURE OF INSURTECH
As the digital ecosystem continues to grow , we ask experts how insurtech partnerships are changing the space
WRITTEN BY : JOANNA ENGLAND
Long gone are the days when monolithic mothership-style insurance giants dominated the industry unchallenged . While incumbents still make up the controlling majority of the space , an awakening of collaboration and partnerships has been slowly unfolding over the past decade .
As technology has advanced and mobile penetration has taken service delivery to customer fingertips , companies have had to adapt . Outsourcing processes to third party operatives has become a way of life . And as digital transformation develops , it shows no sign of slowing down . We asked five industry experts how they thought the sector was changing - and what the future holds .
Partnership networks and the legal perspective Rachel Hillier of Capital Law is an experienced regulatory lawyer and leads the Financial Services team
Investor directors can be a huge asset bringing experience and contacts to the Insurtech board of directors , but I have also seen such partnerships fetter ambitions of Insurtechs and push the business into directions that were not intended by founders . Usually , the root of the problem is that these matters were not discussed in any detail at the beginning of the relationship .
Many Insurtechs are Managing General Agents ( MGAs ), relying on insurance capacity from incumbent insurers , acting as the insurer ’ s agent with delegated authority to bind insurance on behalf of the insurer .
This is a key relationship and finding the right capacity partner is vital to success . If an investor plans to exit within a certain number of years , it is important to talk about this at the beginning of the relationship . Insurers will have in mind a limit on the size of the book they are willing
88 January 2022