Over and over again we talk about the need to innovate in the fintech arena or be left behind. This is true in all categories of finance, including insurance, yet a new report from KPMG has shown that the insurance category appears woefully unmotivated to step up their game, and over 50% have no intentions to increase their innovation investing in the next 3 years. Sounds like a dangerously lackadaisical attitude to us, given how the insurtech sector is taking off, with firms like Lemondade gaining traction and market share nationally. (Cindy Taylor)
"A new report signals a warning to insurance companies: accelerate your digital transformation and accept disruption, or risk falling behind into a spiral of uncompetitiveness.
The warning comes from a KPMG survey which concludes there is an imperative for insurance CEOs to accelerate their digital transformation process and innovation efforts in order to remain competitive.With the survey, business analysts KPMG polled over 100 global insurance CEOs and quizzed the executives about their plans and concerns for the near future. Given the speed along which the insurance market is transforming and the numerous forms of insurtech that are appearing, many insurance companies appear to be reacting relatively slowly
In this context, the survey suggests that unless some insurance firms renew their strategies and pick up pace they risk being left behind. A significant threat comes from newer, more aggressive and digitally aligned start-ups.
This warning arises because the KPMG study found that less than 50 percent of insurance firms are planning to increase investment into innovation and emerging technologies over the next three years. Full Story at DigitalJournal