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How InsurTech-Insurance Partnership Delivers New Product Innovations

4 minutes, 27 seconds read

In 2019, InsurTech funding reached $6 billion, acknowledging the pace that technology can bring to overcome the age-old Insurance problems, the State of AI in Insurance 2020 says. While Incumbents are known for their core competencies in end-to-end insurance processes (from underwriting to claims settlement and reinsurance), InsurTechs are enticing millennials with fully digital innovative products and solutions.

The current situation can be viewed as either growing competition for traditional Insurers or an opportunity to collaborate and procure maximum benefits from each other’s competencies.

The World InsurTech Report 2019 states that nearly 90% of InsurTechs and 70% of Insurers are interested in collaboration with other InsurTechs and Insurance firms.

[Quick read: 10 Key Takeaways from the World InsurTech Report 2019]

In this article, we will discuss how InsurTech and Insurance partnership is proving beneficial for the entire ecosystem along with some successful partnership stories.

InsurTech and Insurance Partnership Benefits

A recent study pointed out that 70% of Insurance Executives are interested in collaborating with InsurTechs for developing new offerings. While developing new & innovative offerings remains the focus, such partnerships can play a crucial role in improving operational efficiency, enhancing customer experience, and increasing data capabilities. 

InsurTech and Insurance Partnership outlook
Source: The State of AI in Insurance


Enabling Mobile-first Business Model

The current generation cares about self-managing everything that matters to them (including Insurance) on mobile. If it’s not convenient to use, the consumer is, perhaps, not ready to adopt it. For instance, each day, more than 5 billion people go online using their smartphones or mobile devices.

InsurTechs, as consumer-focused they are, have been leveraging mobile technologies for micropayments, mobility and IoT connectivity.

Insurer’s benefits:

  • Capability to extend their services/products to the mobile channel.
  • Attracting new customers who are more inclined towards self-service options.
  • Making information and services accessible and available everywhere, irrespective of geographical location, thus enhancing the customer experience.

Gaining Operational Efficiency at Scale

Insurers can harness InsurTechs’ capabilities on cutting-edge technologies like cognitive process automation, natural language processing, and ML-derived insurance analytics. Applications built using these technologies are scalable to the enterprise level. 

[Related: Cognitive Automation and Its Importance for Enterprises]

For instance, with cognitive automation, Insurers can improve the efficiency and quality of computer-generated responses. Forrester predicts cognitive processes will overtake nearly 20% of service desk operations.

Similarly, InsurTechs are investing in developing workflow automation solutions, using which Insurers can create new automated workflows and/or customize existing workflows. Workflow automation with intelligent document and data processing capabilities has resulted in over 80% operational gains over manual processes.

Another milestone in improving operational efficiency is achieved through the adoption of chatbots. NLP-powered chatbots seamlessly integrate with an organization’s workflows and are a great way to humanize machine conversation and at the same time automate customer service portals.

Opportunity to extend the portfolio

InsurTechs still require traditional Insurers’ support for underwriting and during risk mitigation. On the other hand, Insurers are sceptical about micro and on-demand insurance because of the distribution challenges it poses for low-profit products. Insurers and InsurTechs can easily bridge the gaps and at the same time extend their range of offerings through strategic collaboration. Since 2017, Insurance and technology firms have announced more than 180 partnerships, KPMG states

For example, American Family Insurance (AmFam) organizes its interests around innovation, advanced analytics, and connectivity. It has investments in CoverHound, HomeTap, Bunker, Wireless Registry, and LeaseLock.

“By making these investments, we do seek a financial return with the investment, but really we look for opportunities to work together, reconnaissance on how the world is changing.”

Dan Reed, MD, Managing Director, American Family Ventures

Source: Insurance Journal

Thus, InsurTech and Insurance partnership can also benefit from extending the product portfolio. Let’s now look at some remarkable examples.

4 Noteworthy InsurTech and Insurance Partnerships from Recent Years

1. Zurich Connect and Yolo

Zurich Connect, the digital arm of Zurich Italy, partnered with on-demand digital Insurance broker Yolo to provide virtual assistance to its customers. Together, they launched HomeFlix — to provide a range of Insurance coverage to renters and homeowners. 

HomeFlix offers laundry service, concierge maintenance services such as plumbing and electric, and cleaning services to its customers along with regular and short-term insurance coverages starting at a nominal price of € 3.55 per month.

2. FRIDAY and Friendsurance

FRIDAY is a Berlin-based InsurTech startup. It offers digital automotive insurance with flexible terms like kilometre-accurate billing and the option to terminate at month’s end. The company partnered with Friendsurance, an online peer-to-peer insurance service provider. Friendsurance business model relies on paying out a percentage to customers who do not use (or use very little) annual insurance.

This partnership helps FRIDAY to sell at its policies on the Friendsurance platform and Friendsurance benefits from providing a range of insurance cover options to its customers.

3. Generali Global Assistance with Lyft and CareLinx

Generali Global Assistance is a division of Italy’s Generali Group. It provides travel insurance-related services. The company partnered with  InsurTech Lyft and CareLinx to improve customer service and provide value-added services (e.g. CareRides, a door-to-door transportation service for special-needs individuals) respectively. 

4. Prudential Singapore and StarHub

Singapore-based Prudential Insurance Company is the subsidiary of Prudential Plc, a British multinational life insurance & financial services company. The company partnered with StarHub to create FastTrackTrade — a digital trading platform. Using the FastTrackTrade platform, users can buy/sell goods, track shipments, make transactions, access financing, and buy insurance.

We’re a recognized InsurTech100 company with main focus on developing AI-first products and solutions for modern Insurance enterprises. For more details, please feel free to drop us a word at hello@mantralabsglobal.com

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Platform Engineering: Accelerating Development and Deployment

The software development landscape is evolving rapidly, demanding unprecedented levels of speed, quality, and efficiency. To keep pace, organizations are turning to platform engineering. This innovative approach empowers development teams by providing a self-service platform that automates and streamlines infrastructure provisioning, deployment pipelines, and security. By bridging the gap between development and operations, platform engineering fosters standardization, and collaboration, accelerates time-to-market, and ensures the delivery of secure and high-quality software products. Let’s dive into how platform engineering can revolutionize your software delivery lifecycle.

The Rise of Platform Engineering

The rise of DevOps marked a significant shift in software development, bringing together development and operations teams for faster and more reliable deployments. As the complexity of applications and infrastructure grew, DevOps teams often found themselves overwhelmed with managing both code and infrastructure.

Platform engineering offers a solution by creating a dedicated team focused on building and maintaining a self-service platform for application development. By standardizing tools and processes, it reduces cognitive overload, improves efficiency, and accelerates time-to-market.  

Platform engineers are the architects of the developer experience. They curate a set of tools and best practices, such as Kubernetes, Jenkins, Terraform, and cloud platforms, to create a self-service environment. This empowers developers to innovate while ensuring adherence to security and compliance standards.

Role of DevOps and Cloud Engineers

Platform engineering reshapes the traditional development landscape. While platform teams focus on building and managing self-service infrastructure, application teams handle the development of software. To bridge this gap and optimize workflows, DevOps engineers become essential on both sides.

Platform and cloud engineering are distinct but complementary disciplines. Cloud engineers are the architects of cloud infrastructure, managing services, migrations, and cost optimization. On the other hand, platform engineers build upon this foundation, crafting internal developer platforms that abstract away cloud complexity.

Key Features of Platform Engineering:

Let’s dissect the core features that make platform engineering a game-changer for software development:

Abstraction and User-Friendly Platforms: 

An internal developer platform (IDP) is a one-stop shop for developers. This platform provides a user-friendly interface that abstracts away the complexities of the underlying infrastructure. Developers can focus on their core strength – building great applications – instead of wrestling with arcane tools. 

But it gets better. Platform engineering empowers teams through self-service capabilities.This not only reduces dependency on other teams but also accelerates workflows and boosts overall developer productivity.

Collaboration and Standardization

Close collaboration with application teams helps identify bottlenecks and smooth integration and fosters a trust-based environment where communication flows freely.

Standardization takes center stage here. Equipping teams with a consistent set of tools for automation, deployment, and secret management ensures consistency and security. 

Identifying the Current State

Before building a platform, it’s crucial to understand the existing technology landscape used by product teams. This involves performing a thorough audit of the tools currently in use, analyzing how teams leverage them, and identifying gaps where new solutions are needed. This ensures the platform we build addresses real-world needs effectively.

Security

Platform engineering prioritizes security by implementing mechanisms for managing secrets such as encrypted storage solutions. The platform adheres to industry best practices, including regular security audits, continuous vulnerability monitoring, and enforcing strict access controls. This relentless vigilance ensures all tools and processes are secure and compliant.

The Platform Engineer’s Toolkit For Building Better Software Delivery Pipelines

Platform engineering is all about streamlining and automating critical processes to empower your development teams. But how exactly does it achieve this? Let’s explore the essential tools that platform engineers rely on:

Building Automation Powerhouses:

Infrastructure as Code (IaC):

CI/CD Pipelines:

Tools like Jenkins and GitLab CI/CD are essential for automating testing and deployment processes, ensuring applications are built, tested, and delivered with speed and reliability.

Maintaining Observability:

Monitoring and Alerting:

Prometheus and Grafana is a powerful duo that provides comprehensive monitoring capabilities. Prometheus scrapes applications for valuable metrics, while Grafana transforms this data into easy-to-understand visualizations for troubleshooting and performance analysis.

All-in-one Monitoring Solutions:

Tools like New Relic and Datadog offer a broader feature set, including application performance monitoring (APM), log management, and real-time analytics. These platforms help teams to identify and resolve issues before they impact users proactively.

Site Reliability Tools To Ensure High Availability and Scalability:

Container Orchestration:

Kubernetes orchestrates and manages container deployments, guaranteeing high availability and seamless scaling for your applications.

Log Management and Analysis:

The ELK Stack (Elasticsearch, Logstash, Kibana) is the go-to tool for log aggregation and analysis. It provides valuable insights into system behavior and performance, allowing teams to maintain consistent and reliable operations.

Managing Infrastructure

Secret Management:

HashiCorp Vault protects secretes, centralizes, and manages sensitive data like passwords and API keys, ensuring security and compliance within your infrastructure.

Cloud Resource Management:

Tools like AWS CloudFormation and Azure Resource Manager streamline cloud deployments. They automate the creation and management of cloud resources, keeping your infrastructure scalable, secure, and easy to manage. These tools collectively ensure that platform engineering can handle automation scripts, monitor applications, maintain site reliability, and manage infrastructure smoothly.

The Future is AI-Powered:

The platform engineering landscape is constantly evolving, and AI is rapidly transforming how we build and manage software delivery pipelines. The tools like Terraform, Kubecost, Jenkins X, and New Relic AI facilitate AI capabilities like:

  • Enhance security
  • Predict infrastructure requirements
  • Optimize resource security 
  • Predictive maintenance
  • Optimize monitoring process and cost

Conclusion

Platform engineering is becoming the cornerstone of modern software development. Gartner estimates that by 2026, 80% of development companies will have internal platform services and teams to improve development efficiency. This surge underscores the critical role platform engineering plays in accelerating software delivery and gaining a competitive edge.

With a strong foundation in platform engineering, organizations can achieve greater agility, scalability, and efficiency in the ever-changing software landscape. Are you ready to embark on your platform engineering journey?

Building a robust platform requires careful planning, collaboration, and a deep understanding of your team’s needs. At Mantra Labs, we can help you accelerate your software delivery. Connect with us to know more. 

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