"Companies creating an ‘AWS moment’ in the insurance industry are likely to focus on narrow segments of the value chain or functions (e.g. pricing, core platforms). They are unlikely to change the structure of the market in and of themselves but they dominate their area, sometimes creating monopolies or oligopolies. These companies are able to extract high ‘rents’ from incumbents who become reliant on their services.
Many would suggest that the catastrophe modelling market is one such oligopoly."
Chris Sandilands Oxbow Partners Sep 20th 2018
Sandilands reminds readers that P&C Insurers have already faced an Uber moment- price comparison websites.
In other words, anticipate your own disruptive competitor which may well come from outside your current competitors.
In the report, we conclude that there could be an ‘Uber moment’ in the corporate and specialty markets. We provide some possible lead indicators, for example: Trends in SME distribution which could make digital accounting platforms the ‘gatekeepers’ to millions of customers for specialty products such as invoice insurance and trade credit New propositions developed by managing agents, for example ‘predict and prevent’ cyber propositions or work with industry to enable new technologies New socio-technological trends (i.e. technology trends that are independent of insurance) such as 3D printing which force the industry to radically evolve its proposition
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