Matteo Carbone of Bain & Company sharing his insight and perspective on the relationship between startups and incumbents in the insurance sector.
I must agree that those startups more willing to collaborate are the ones most likely to have a sustained presence in the market. In fact, when recently judging innovators in Insurance IoT, for me it was those ventures that considered ways in which they could work with the insurance sector that scored highest (see http://roc-connect.com/ as a good example).
I’m bullish about collaboration, the insurance sector will be characterized by ecosystems and the large part of the profit pool will go to the players able to integrate and manage complex and liquid ecosystems. I’m expecting to see boundaries between roles in the value chain to disappear and same players to collaborate or compete at the same time, depending on context. The collaboration approach between Incumbent and newcomers already demonstrated to work well in the most mature InsurTech use case: auto telematics.