Attending Insurtech Insights in London last week was really interesting, especially as a first time attendee. Those reading this from a legal tech background, think ILTACON in terms of size and scale and Legal Geek in terms of focus on enabling networking and the sharing of ideas.
The event got me thinking about how the legal and insurance sectors are both different and similar in many ways. Some of the similarities include
Both sectors have embraced the concept of innovation (and they’ve needed to). Enabled by emerging concepts and technologies, firms and organisations are looking to evolve beyond the traditional ways of doing business. Technology providers have in part driven some of the innovation we’ve seen especially those low/no code and AI technology providers, that allow for rapid development of solutions without the need of a true IT developer.
The drive to streamline operations and reduce manual tasks through process re-imagination and automation are obvious. There has been clear focus in recent years on larger volume based repetitive tasks but this is moving to smaller standard work types now and the ability to orchestrate entire processes is now possible.
Whilst legal is catching up it’s clear that insurtech has been enabling the industry to focus on its data for a while. The importance of good data is now recognised and is being used to make informed decisions and drive business outcomes. By focusing and harnessing the power of data, companies are able to improve decision making, optimise processes and mitigate risks.
Both sectors are highly regulated with complex legal and regulatory frameworks. The need to stay abreast of regulatory developments and implement robust compliance measures is essential. Technology that considers and helps navigate the myriad of laws, regulations and compliance requirements is on the rise.
This assessment was drawn from walking round the vendor hall, chatting to industry experts and clients in the insurance world.
It was clear that there is a reassuring amount of similarity between insurtech and legaltech in terms of focus and maturity and how it has been reacting to and driving change but it was interesting to see a few areas that stood out in terms of messaging and focus at Insurtech Insights that I think will be prevalent in legaltech in the coming years. This is not to say that these areas aren’t covered in legaltech (please don’t be offended) but appears to have been more of a focus for the insurance industry.
Whilst there is always talk about customer centricity, matter centricity etc etc it would seem that true customer centricity has been a priority for the insurtech industry for a number of years. The acceptance that much of the technology will be put in the hands of customers like you and me, means a lot of user experience and design has been factored in. This isn’t just about creating excellent digital experiences but delivering personalised services and accessible support channels focused on client satisfaction and loyalty.
From the focus of the event and the messaging seen on the day, it is clear that there has been and continues to be a tremendous focus on leveraging advanced data analytics and predictive modelling to manage and assess risk. Better data and accessible relational data is essential in delivering the ability to make more informed decisions, which is vital for any business.
Interestingly there were a few conversations and vendors that enabled smarter pricing models based on real-time data and customer behaviour. The death of the billable hour is a long way away in legal but there has been progress, it just felt that customers in insurance wanted, expected and needed different ways of doing business such as outcome-based pricing, and value-based billing.
I think that by drawing inspiration from insurtech in these three areas, legaltech can accelerate towards exceeding the evolving needs of legal professionals, clients, and the broader legal ecosystem more effectively.
How many of your operate in both sectors? Do you agree with my thoughts or do you have a different point of view?