Insurance industry is just like the related banking industry or sector, being strongly rooted in history. The concept of insurance dates back to at least the 18th century B.C., with the Code of Hammurabi (or more specifically c. 1792–1750 BC) . Modern insurance believe to bagan in London in the early decades of the 17th century, before we had today property, business, life, accident, national insurance.
The world is transitioning from the third into fourth industrial revolution (4IR) industry 4.0, with the help of the extensive computing and internet infrastructure, it allows emerging technologies to once again, make the great change in human history. Just like other industries, without a great vision and active participation for what is next, even an established house that exists for a few hundred years will be wideput from the history, just like what you saw from the newsheadlines in recent years. The wealth accumulated from the past and from old business models, once again, being challenged by disrupting innovative products such as fintech and InsurTech (use of fintech in insurance).
Just like how fintech is disrupting the existing banking and finance industry, InsurTech is in the traditional and conservative insurance business.
Due to a lot of new business models that were invented during the transition period from third to fourth industrial revolution (4IR) industry 4.0, traditional and conservative existing players are not ready to deal with those new changes and choose to reactive or passive to deal with those modern disruptive innovations. From all the government and regulatory issue license and permits to operate new generations of fintech or insurtech products, we will seldom notice that the existing players are really proactive in participation. What we see is a list of technology focused and driven companies more keen in participation for the development of fintech and insurtech products for the modern and future market. From the operating mobile wallet, mobile financing to provide insurance coverage all with the single mobile application within the user’s existing smartphone, or promoting for all kinds of use cases, like top up into virtual money and currency can be used in the respective mobile application and services platform use only.
World is changing from paper currency and coins into digital currency for good, but you will notice the one active participation in the next wave of big things is not really existing banking and insurance companies. Just like what happened in the electric vehicle (EV) transforming the existing automobile industry from the fuel based century old engine based to electric power, the existing player from automobile and oil and gas industry is not really keen in the roll out or adapt or accelerate the change by involving it. Now we has Telsa as leading new generation of automobile leader, you see their stock market price and you know the market expectation, and you compare with the rest of existing automobile player, what they do in the EV market. Same trend will happen in the different industries and sectors, it transitions and who will be the first to transform the market, will provide the opportunity to wideout the rest, to kill or be killed. Just imagine how Apple invented iPhone first commercially successful smartphone in the world and transformed the industry thereafter, again from the tablet Ipad, and smartwatch.
The future of insurance is to create new modern values that last, if the trend goes forward, we may expect the one that last may not be the existing player, it may be the successful fintech company or cross industry player who come with the ambitious and visionary disruptive innovation.
E-SPIN Group in the enterprise ICT solution supply, consultancy, project management, training and maintenance for corporation and government agencies did business across the region and via the channel. Feel free to contact E-SPIN for your project requirement and inquiry.
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