Accelerators are a mature concept in many industries and have been increasing in number in recent years. Corporations and investment firms are partnering with accelerators to gain early access to startup companies that are developing the latest technologies in their industries. Technologies coming out of startups in accelerator programs have been adopted by industry leaders in nearly every sector. In many cases, technology has improved the overall customer experience, driven efficiencies and expense savings, and fueled growth. Recently, a wave of accelerators with an insurance focus have been doing exciting work, gaining attention from leading insurers, other established industry players and startups themselves.
Executive SummaryDrawing from survey data in a recent Celent report, Michael Fitzgerald, an analyst with the firm, provides insurers with insights to understand the insurance accelerator space and factors to consider when making a decision to participate in one. Among the key benefits: Accelerators offer insurers a defined screening process to evaluate many more opportunities than a single insurer acting alone could perform. Fitzgerald also highlights differentiating factors including structural variations and scope differences related to line of business and geography.
Most insurers have many questions when evaluating the opportunities of participation in an accelerator. What differentiates one from another? How should effectiveness be measured? Which pricing should be selected? Who should be involved from their organization?
Insurers that wish to understand the space can with some research. This article will provide a starting point based on the survey data contained in the recent Celent report “Insurance Accelerators: A Market Scan.”
Why Might an Insurer Need a Technology Accelerator?
Multiple forces are changing the ways insurance is marketed, purchased and serviced. Social media platforms, online retailers and consumer product firms are expanding customers’ expectations regarding ease and availability. Demographics introduce increasing numbers of millennial “digital natives” into the commerce stream. New technologies open up opportunities to serve customers and to identify, mitigate and eliminate risk.