Recent insights from WTW's Laura Doddington highlight the dual challenges facing the insurtech sector today. Emerging technologies have certainly raised expectations within the insurance industry, leading to a notable increase in the number of insurtech startups. However, not all these companies are equipped with a strong foundation in the essential aspects of underwriting and insurance expertise.
Many of the newer insurtech ventures are seeing difficulties as they try to compete in a rapidly evolving market. Without a solid grounding in underwriting practices, these startups may struggle to deliver the reliability and trust that customers expect from an insurance provider.
On the flip side, established insurtech companies are also facing their own set of hurdles. As innovation accelerates, these legacy players find it increasingly challenging to keep up with the new technology trends and customer demands. Their established systems and practices may hinder their ability to adapt quickly.
The implications of these challenges extend beyond just the insurtech companies themselves. Customers may face inconsistencies in service as startups grapple with foundational challenges, while traditional players might take longer to innovate and adapt. This creates a competitive landscape where both new and existing companies must find their niche to succeed.
In summary, as the insurtech landscape continues to evolve, a balance between innovation and the depth of expertise in underwriting is crucial for success. The industry will need to address these challenges if it hopes to realize the potential that new technologies offer.
Original Source: https://www.theinsurer.com/ti/news/wtws-doddington-insurtechs-struggle-to-balance-innovation-and-expertise-2025-06-20/