Insurtech investment has been directed at the wrong places and instead of start - ups undermining established insurers , legacy companies are poised to exploit new technology and grow their businesses . Consultant and former McKinsey entrepreneur James Twining said investment must be directed towards the biggest cost centres of the insurance value chain , risk pricing and claims , rather than distribution , an area that already has too many players in it . So far investment has been sunk into streamlining processes and improving customer service , which ' n't going to change , Twining wrote . Those unable or unwilling to be part of these collaborative networks will fail or have to sell out. Developing and deploying artificial intelligence and improving data extraction will be key to making that transformation , he concluded .
Insurtech investment has been directed at the wrong places and instead of start - ups undermining established insurers , legacy companies are poised to exploit new technology and grow their businesses . Consultant and former McKinsey entrepreneur James Twining said investment must be directed towards the biggest cost centres of the insurance value chain , risk pricing and claims , rather than distribution , an area that already has too many players in it . So far investment has been sunk into streamlining processes and improving customer service , which ' n't going to change , Twining wrote . Developing and deploying artificial intelligence and improving data extraction will be key to making that transformation , he concluded .