Digital Transformation - November 6 2019
Rob Galbraith is the bestselling author of The End of Insurance As We Know It: How Millennials, Insurtech, and Venture Capital Will Disrupt the Ecosystem. He has been called “a global insurtech thought leader” and “the most interesting man in insurance.” We caught up with Rob to ask a few questions about insurtech and where the insurance industry is headed.
Rob, the insurtech movement is one of the biggest changes facing the 300-year-old insurance industry. How is the industry dealing with technological change and the need to innovate to keep pace with rising customer expectations and grow?
A friend once asked me why all insurance companies are risk averse and I had to confess I did not have a good answer. His response? “Because all the risk takers eventually go insolvent!” While I’m not sure that is 100% true, it certainly has some credence in my view. As a result of its incredible staying power – the newest P&C carrier of the top 10 in the United States was founded in 1937 (!) – most traditional actors have been slow to embrace change. More recently, many players are warming up to the importance of innovating to meet rising customer expectations set by leaders in other industries such as Amazon, Google, Apple and more. But my sense is that innovation is a new muscle memory for most companies and there are a lot more organizations who want the appearance of being innovative rather than rolling up their sleeves and actually fundamentally changing the way they do business. I wrote an article for InsurTech Rising titled Innovation as a discipline, not a side show that captures my thoughts on the need for embracing innovation as a core competency. One major hurdle is the issue of technical debt caused by legacy technologies that cannot simply be thrown away but are badly out of date. This is where insurtech partners such as Chisel AI can be of tremendous value!