When InsurTech startups first appeared on the scene, many incumbent carriers may have seen them as existential threats. But given time, panic attacks have generally given way to a more sober appreciation of how disruption can be leveraged to a particular carrier's advantage via collaboration with the new kids on the block.

Indeed, most insurers are working together with InsurTechs these days to capitalize on new applications, algorithms, and mobile apps, rather than worrying about being displaced by more innovative outsiders. That's why members of the legacy insurance industry were able to mix so freely and easily with the expanding field of InsurTech players at a recent conference in Las Vegas. Incumbents wanted to hear what their competitors are up to, see with their own eyes what kinds of solutions are available or on the drawing board, as well as meet face to face and talk deals with developers.

Related: 3 best practices for collaborating with InsurTech startups

Digital age partnerships

Wandering through the exhibit area at InsurTech Connect, you could find lots of shiny, new toys for insurers to play with, from facial analysis for accelerated life insurance underwriting, to artificial intelligence bringing virtual assistants to life, to blockchain applications backing smart contracts. But beyond the emergence of intriguing tech tools, my chief takeaway was that a more fundamental shift is underway that could alter the very nature of insurance. Tech companies may not displace legacy insurers anytime soon, as once was feared by some, but partnerships with InsurTechs will almost certainly be required if carriers are to reinvent how they do business so they remain relevant and competitive in an increasingly digital world.