March 2020 – Partnering with InsureTech startups offers insurers access to new technology and approaches, but requires new practices in establishing and managing relationships. Due to their immaturity, cultural differences, and potential lack of insurance industry knowledge, InsureTech startups come with inherent financial and business risks. Insurers should provision for a possible lack of insurance industry experience and the eventual termination of the relationship if necessary.

This CIO Checklist identifies the pitfalls and potential issues in InsureTech investments and contracts. It is the fourth in a series of briefs on establishing effective solution and service provider relationships.

The Checklist

• Define the use case
• Evaluate the InsureTech business model
• Determine the overall market potential
• Expect gaps in industry knowledge
• Anticipate cultural differences
• Expect IT process differences
• Define scope and key requirements carefully
• Architect for change or InsureTech failure
• Predetermine acceptable investment levels