Solving the digitization trilemma

Solving the digitization trilemma

Written by Manuel Holzhauer, Managing Director InsurTech Hub Munich on 2 Oct, 2019

Artikel auf Deutsch verfügbar; klicken Sie hier!

Customer identity

The fourth stage of the industrial revolution brings huge opportunities for insurers to hedge new risks and digitize processes. To seize these opportunities, the industry should not see innovation and tradition as contradictory. Solving the ‘digitization trilemma’ means overcoming the limitations of legacy IT systems and traditional corporate cultures.

In the second half of the 19th century, a new disease connected both physicians and scientists: Railroads were an upcoming means of transportation, moving at unprecedented speed, leading some passengers to complain about exhaustion, irritability and indigestion. This was a lifestyle disease typical for that time, comparable to the ‘texting thumb’ that people suffer from these days. But you could also look at it as a timeless expression of scepticism about technology, in which the risks and side effects are emphasized instead of praising the progress being made.

According to this logic, many assume that risk-averse industries such as insurance don’t really move forward in times of great change. However, in retrospect, the opposite is true: the insurance industry, like the economy, has profited massively from the innovations created during the three stages of industrialization. The value of production plants, which were initially equipped with steam power, then with assembly lines, and finally with computers, has risen considerably – and so has the need for hedging risks

Want to continue reading?

Sign up for our newsletter to read the full article and receive the latest news about innovation in insurance and Insurtech straight to your mailbox every week. Already signed up before?

Benefits

  • Join over 20,000 other insurance executives to receive the latest innovations in insurance
  • Be the first to read our Insurtech editorials
  • Stay tuned for the latest community news
  • Get access to exclusive offers!

Your subscription is confirmed!

Thank you for subscribing!
We’ll keep you updated about the latest insurtech news and upcoming events.

The DIA Community

Explore recommended articles

Nect has pioneered the Robo-Ident inside the German Insurance Industry. This new category of Identity Verification Systems is a Video-Ident based on Artificial…

Read more

Harmoney offers an end-to-end onboarding and compliance solution to the banking and insurance industry. The Belgium startup solves the cumbersome, often paper…

Read more

The insurance sector has evolved during the last years, as the world and the needs of people have been changing. “We need to create open innovation…

Read more