Insurance Innovation in the Rapid Connection Age
Over the last decade, consumers have demanded less friction and seamless processes, and digital transactions have permeated every kind of purchase, so much so that the insurance industry can no longer turn away from it.
Modern consumer expectations plus increased competition result in insurers having to innovate faster by launching new products, adding new features, or expanding their distribution channels. Insurers can achieve this by connecting to an ecosystem of point solutions – everything from data providers to chatbots to workflow automation tools. These solutions give insurers the opportunity to differentiate their products, and the ability to provide their customers with in-demand features and capabilities.
We sat down with Dan Woods, Founder and CEO of Socotra, to talk about his vision regarding insurance innovation in the Rapid Connection Age.
What is the Rapid Connection Age and how does it affect insurance innovation?
“Rapid connection is necessary because the insurance industry’s complex needs have far outstripped what any single vendor can possibly provide for them. Insurers today consistently want to leverage up to 15-point solutions to drive value for different use cases across their organizations. However, most core systems stifle this progress due to long and expensive integration projects that pose a high risk of failure.
When an insurer can add new point solutions as easily as adding an app on a smartphone, their ability to innovate, add new features, and stay ahead of the competition is revolutionized. They’re no longer locked into a single vendor and can accelerate the speed of their product launches, offer better customer experiences and achieve growth on their own terms.
Insurers should leverage the full power of the insurtech ecosystem – quickly, easily, and without vendor lock-in – through open APIs and true app marketplaces that provide fast or even instant integrations without custom coding. Insurance is complex. The ever-changing variety of insurance products and data sources, mixed with the multitude of distribution channels, from agents to digital to embedded, demands an ecosystem of swappable and continuously improving technology.”
How should insurers adjust their innovation? And what role can insurtechs and other stakeholders play?
“Insurers today need to recognize the power of ecosystems and the value they bring. By leveraging technology and data, insurers can streamline their processes and create a seamless experience for both their customers and business partners.
Insurtechs capitalise on these trends as they are usually equipped with more modern technology and they have less historical baggage that slows down their innovation. Many carriers will look to leverage and partner with insurtechs offering innovative new products. This partnership will open up new channels and products for the carrier with greater speed than if they needed to deploy new systems.”
What future opportunities and challenges do you see?
“Ecosystems will continue to grow and solutions from outside the industry will find their way in, providing new value and new opportunities to insurers. It’s all about delivering value at every touchpoint, anticipating and meeting the evolving needs of customers. This not only leads to increased satisfaction but also creates new opportunities for revenue growth. Companies who do this well, will not only earn the loyalty of their customers but create a sustainable business model for years to come.”
What value can Socotra bring to insurers trying to innovate?
“Socotra provides a modern core platform to the insurance industry, bringing unparalleled speed, agility, and efficiency to carriers, insurtechs, and MGAs. The platform is best known for its advanced cloud-native technology and standardized, public, open APIs that enable clients to innovate quickly and stay competitive in a fast-changing market.
Socotra recently introduced a line of complete insurance IT solutions designed for household and motor, composed of Socotra Connected Core, seamlessly integrated via Socotra’s App MarketPlace with industry-leading software and data providers, including Mendix, Snapsheet, and Stripe. Socotra CorePlus is designed to decrease risk and costs while increasing speed-to-market and standardization demonstrating the significance of rapid connections and robust ecosystems.”
Who is Socotra?
Socotra was founded in 2014 and is based in San Francisco. Socotra is the first cloud-native core platform for insurance and the first core system to believe its APIs and configuration formats should be open to the world. Founder and CEO Dan Woods began the company with a mission to liberate a critical industry from the rigid, fragile, over-customized technologies of the past. Socotra is backed by venture-capital firms including Founders Fund, 8VC, Nationwide, Brewers Lane Ventures, USAA, M@&AD and Portage.
Interested in Socotra’s App MarketPlace? You can learn more about the flexibility and speed of it here.
ITC DIA Europe 2023
Socotra’s Chief Business Officer, Ekine Akuiyibo, will take the Deep Dive Stage at ITC DIA Europe 2023 in Barcelona joined by Seb Chakraborty, Chief Product and Technology Officer of Domestic & General to talk about a powerful trend gaining momentum, embedded insurance. While embedded insurance has been present in the industry for some time, its current significance has the potential to revolutionize the insurance industry in significant ways. However there are certain prerequisites that must be met in order to succeed. In the session ‘Insurance Everywhere, All At Once: 5 Tips for Developing Successful Embedded Insurance’, Ekine and Seb will discuss the embedded journey and the five success factors that must be considered when you plan this new offering.