Andy Cohen, Snapsheet President, discussed the partnership opportunities of insurtechs and legacy carriers during a panel on no/low code claims management.
ITC 2022 is the largest gathering of insurtechs in the world. Held in Las Vegas from September 20-22, this year’s event drew 9000 registrants to discuss insurance, technology, and risk management.
Andy Cohen of Snapsheet discussed his views on the future of insurtech and no/low code claims management as part of a multidisciplinary panel about No/Low Code Claims Management.
Cohen was joined on stage by leaders at insurtechs Benekiva and MIC Global and legacy incumbent Aon for an engaging discussion on the benefits and drawbacks of no/low code claims management. And through the course of the discussion, some common ideas emerged.
The Future of Insurtech is Partnerships
The theme heard at ITC 2022 and Cohen’s remarks is how the future of insurtech will function. The industry has evolved from the first phases of insurtech, where competition ruled. Partnerships are king. Carriers and insurtechs alike have realized they can’t be everything. Maximizing value means focusing on what each insurtech does best to create a customized suite of solutions.
Many insurtechs have narrowed their scope to become experts in one specific area or workflow. Examples include payments, communications, appraisals, data analytics, claims management, billing, fraud detection, and document management. And in this process of niching down, insurtechs have begun to realize they must partner with other complementary insurtechs to provide the best-packaged value for their clients.
Cohen explained, “It’s amazing how everyone thinks they need to use one claims platform. But there’s tons of value in diversifying solutions and combining your tech stack to find the most value.”
Combining several insurtechs that work together symbiotically means legacy carriers can implement the right solutions at the right time to solve their challenges. They can combine Snapsheet’s claims management platform with other insurtechs to amplify the power of the solutions, creating a stronger, more robust platform that could be managed individually. Cohen also pointed out this provides a lower total cost of ownership for the carrier, a significant consideration for any tech budget.
No/Low Code Claims Management Solves Legacy Challenges, Creates Opportunities
Cohen spoke about how no/low code claims management drives innovation and reduces expenses. He commented, “Technology has failed insurance carriers for decades. We had better technology at home than at work. Low code/no code gives business users the power to drive different workflows and improve outcomes.”
But the dissenting perspective is that no/low code claims management is too simplistic for a complex ecosystem like insurance and risk management. And sometimes, legacy carriers have been disappointed by their insurtechs and have yet to accomplish their goals through adopting new technology.
Addressing this problem, Cohen spoke about the difference between insurtechs built around insurance processes and workflows — and those that are not. “Domain expertise is the differentiator. Building a claims platform for life is different than for P&C. Having domain expertise gets you 80% of the way. But you should have the capabilities and knowledge to configure the last 20% with specific industry information.”
This is a sea change from the first wave of insurtechs, which saw either domain expertise or configurability — not both. Snapsheet offers a robust claims platform built on domain expertise with added configurability in the hands of the business user. “We’re best of both worlds,” Cohen summarized.
The future of insurtechs — and the risk and insurance industry — lies in intelligent partnerships between legacy carriers and robust technology stacks. Insurtech 2.0 will bring more growth opportunities, with intelligent tech stacks driving innovation and change. Insurtechs and carriers that get this right will be the leaders in the future.
Cohen ended his remarks and the panel discussion with optimism: “The future is brighter when insurtechs work together to support each other, not compete against each other.”