Rajeev Aggarwal

Why are companies outsourcing today? The simple answer: there’s a massive shortage of talent.

In this segment of the series, the authors examine the role M&A will play in the industry’s adoption of insurtech—and more generally, the need for established carriers to adapt to the increasingly innovative and service-based product and service offerings new entrants bring to bear.

Carriers, pressed by lower expense insurtech models that emphasize direct-to-consumer engagement and new, rich data sources, are beginning to encounter a bifurcation of risk and client characteristics.

User-friendliness and a seamless experience will go a long way toward the perception that the insurer is providing value.

As this happens and expense ratios are driven down, only those carriers which can fully utilize analytics and data-augmented decision making in their underwriting process will be able to price effectively in the market.

New technologies are expected to fundamentally change how insurance is distributed, but alongside this redefinition of roles comes an accompanying talent crisis.