February 10, 2017
Some professionals argue that the only path to sustainable growth is to work with incumbents in the industry. Indeed, startup-institution relationships (whether its Carrier-InsurTech, or Bank-FinTech cases) have evolved from competition to a beautiful friendship, bringing out the best and accelerating innovation adoption.
On the other hand, while the benefits of collaborative culture are undeniable for the insurance industry (as any other), imbalanced partnerships may also impose a long-term threat to the startup side in terms of eradication of its competitive edge. More particularly, accelerating collaboration in the form of accelerators, dedicated VC funds established by institutional insurers, creates an opportunity for incumbents to learn and adopt the best technology and solutions (which, of course, is very important for the industry), while remaining in a safe and powerful position.