Technology is the Future of Insurance - FINTECH Circle

The traditional insurance business model is going to fundamentally and permanently change from what was invented in the Lloyd's coffee shop in 1668 and which has been the basis of insurance ever since: Risk Mitigation via Indemnity and minimising interactions with customers. The next 10 years will see unprecedented change in the insurance industry. Traditional insurance companies selling and servicing the old style product model are being replaced by IT enabled, risk management companies selling profitable, long term contracts for valuable services delivered as RMAAS (risk management as a service). The experience of other industries offers a stark warning to the insurance industry: banks suffering death by a thousand cuts from tech companies in payments, cards, lending and now open banking, show the way it will go. Even software is sprinting to a cloud based, software as a service (SAAS) model.