McKinsey expert: How tech can help where insurance falls short

Insurtech's Role in Addressing Insurance Failures

Tanguy Catlin, a noted expert in the insurance sector at a well-known consultancy, argues that the traditional insurance industry is falling short in meeting the needs of society. He points out that many aspects of insurance are outdated and insufficient, particularly when it comes to responding to emerging risks and customer expectations.

Challenges Identified

According to Catlin, these shortcomings mean that customers often feel underserved. Factors such as slow claims processing and inadequate product offerings exacerbate these feelings. He emphasizes that there's a noticeable gap between what consumers want and what the insurance industry currently provides, which could lead to a loss of trust in the system.

Solutions Through Insurtech

Catlin sees significant potential in insurtech companies to bridge these gaps. By leveraging technology, insurtechs can offer more tailored solutions that cater to individual customer needs. This can include improved data analytics for better risk assessment and faster claims handling, as well as enhanced customer engagement tools.

Moreover, innovations such as artificial intelligence and machine learning can help insurers better understand and respond to changing market dynamics. Catlin believes that by integrating these technologies, traditional insurers can enhance their service offerings and rebuild trust with clients.

Who Will Benefit?

If insurtech solutions gain traction, the benefits could extend to consumers looking for more adaptable and user-friendly insurance products. Traditional insurers could also see improvements in operational efficiency, which could contribute to stronger financial performance.

In conclusion, there is a clear call for collaboration between traditional insurers and insurtechs to address the current limitations and better serve the public. The intersection of technology and insurance could pave the way for a more responsive and effective industry.

Original Source: https://www.dig-in.com/news/mckinsey-expert-tech-can-help-where-insurance-falls-short