[Video] P&C in 2021 Pt. 5 – What InsureTech can Learn from FinTech
Webinar Series Recap
P&C in 2021 is a webinar series that examines industry trends and reactions with leading analysis and experts, hosted by Ryan McMahon, VP of Insurance & Government Affairs at CMT.
In the series’ fifth installment, McMahon invites Tom Mason, Senior Research Analyst of S&P Global Market Intelligence, and Kyle Schmitt, Vice President and Global Managing Director of J.D. Power to discuss how technology has changed consumer finance forever and how leading FinTech companies are driving that change and what that means for the insurance industry
The group starts by discussing FinTech – What is it? What are examples of it? And how has it driven change in the financial industry?
Mason states that “any company that uses cutting edge technology and applies it to financial services or be asset management or lending or insurance is considered to be FinTech.” Some of the “Giants” include Visa, MasterCard, PayPal, with new players like Stripe and Square developing as disruptors as well.
To better grasp it, McMahon asks the group to define their experience both professionally and personally with FinTech.
Schmitt admits that most of his experience with FinTech comes from a personal level, and notes that the introduction of FinTech solutions like mobile banking and investment apps have absolutely increased the frequency with which he engages with those services. This is where the insurance industry can really learn from FinTech – instead of thinking about their insurance policy once every six months or so, carriers can get their end users engaging with their telematics app weekly, or even daily, and thinking about their driving and becoming better drivers more routinely.
Schmitt explains that the majority of people interact with either a FinTech company or a style service within their existing financial services providers. When comparing Insurance companies to FinTech services, he encourages carriers to consider that “consumers need an intuitive interface to be able to interact digitally. Carriers are now looking for ways to increase that interaction,” resulting in connected insurance solutions.