Tech disruptors don’t have to spell the end of insurance companies

Published: April 29, 2019

Updated: June 3, 2019

Author: Luke Jones

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Disruption is often a word that has insurance companies cowering in fear. Disruptors are also something insurance professionals now expect to intensify in the coming years, according to KPMG’s sixth annual Canadian Insurance Industry Opportunities and Risks report.

Published this week, the report shows 68% of participating insurers expect major technological disruptors in the industry over the coming three years. This same number believe the disruptors will weaken the market and could even kill off some traditional insurance providers. However, 63% of those surveyed believe technology is an opportunity and not a threat.

Speaking to Insurance Business, Darryl Levy, president and CEO of Wynward Insurance Group, explained why his company welcomes the technological changes.

“Disruption is great for business. It means that you’re continually innovating as a business and, at Wynward, we look at the disruption that’s in the market today, but also the potential of disruption, as a good thing because it means that we’ve got to disrupt ourselves as an insurer before someone else does,” he said.

Wynward says embracing technology can give insurance companies control over the disruption because it will be happening in-house. By leveraging data, technology can be used to manage disruption and create new solutions for customers. In fact, embracing technology disruptors is the only options for insurance companies, otherwise their very existence could be at risk.

“Our industry is now in a critical moment where it’s innovating more than probably ever in its history because of the use of technology and what technology can do for us, [and] for our broker partners and for our customers collectively,” said Levy. “We’re able to leverage some very interesting toolsets that hadn’t been available before to serve our customers better and that’s what it’s all about, as well as leveraging technology to differentiate ourselves.”