In part two of a two-part Tech Trends in Insurance report, Bill Pieroni, President & CEO of ACORD, discusses the latest developments in InsurTech – “a real phenomenon.” Mr. Pieroni sees two types of InsurTech firms: companies that have a fundamental understanding of the challenges faced by the insurance industry, and those with solutions looking for a problem.
The insurance industry tends to be risk averse and thoughtful about technology deployment, wanting proof of value before scaling up. Mr. Pieroni knows of some InsurTech firms who are frustrated with the pace of change and uptake. He advises these firms to “be patient; know how to partner, and be adept at presenting business cases that show value.”
Mr. Pieroni advises insurance carriers to “know who is trying to help you; separate companies trying to sell solutions from those with a deep understanding, and learn to be a partner.” There are vendors that want to help and make an impact.
Tomorrow’s winners recognize the inevitabilities of the insurance industry, whether it’s demographic, psychographic, digital and emerging technologies, the Internet of Things (IoT), artificial intelligence (AI), or Blockchain. Those that so not view information technology (IT) as a cost to be squeezed, but view it as a source of competitive advantage can win. Mr. Pieroni advocated a “capabilities-led approach execution. “Those that link strategic intent to capability imperatives…can gain a competitive advantage.”
ACORD is in a unique position, serving vendors, carriers, brokers and agents. Since its beginning, ACORD was created to promulgate standards. Increasingly, Mr. Pieroni says members want solutions. He expects ACORD to lead and provide more resources beyond standards to support vendors with real solutions that lower costs, and the risks and time to deploy them. ACORD will work with carriers and agents to reduce the pain and threshold associated with digitization of the value chain.
Make sure to watch part one of the two-part interview where Mr. Pieroni discusses the disruptive effect data and technology has had on the insurance industry.