Insurance and risk management professionals who monitor where their industry is headed and what it must do to keep up with customers know that now, technology solutions are the name of the game. There's no shortage of technology providers eager to partner with insurance businesses. The talk among such InsurTechs these days is less about disrupting a centuries-old industry and more about how to grow their business by forging the right partnerships. At the same time, the impact of the COVID-19 pandemic, in addition to contemporary consumer economic shifts, dictates that insurance carriers are updating their strategic plans to include the development of technology tools and services that can help them pull ahead as quickly as possible. "The COVID-19 outbreak and resulting economic fallout radically shifted consumer and employee needs, habits and expectations," former NU Property & Casualty magazine Editor-in-Chief Sam J. Friedman wrote in his January 2021 column for PropertyCasualty360.com. "Technology upgrades in a variety of areas… (are) a vital element helping insurers continue to conduct business and remain connected with intermediaries and clients while working remotely." So InsurTech in 2021 is more than a buzzword. It's a promise that technology investment will deliver a customer experience that distinguishes an insurance business from its competitors. The 11 companies profiled above are making good on that promise.

InsurTech success stories

Ryan Collier, chief digital officer with Risk Placement Services, says it was not even a decade ago when insurance carriers began to get serious about rising to the expectations of digital consumers. Those that succeeded with a customer-centric business strategy thrived while those that stuck too closely to an antiquated way of doing things likely struggled. "One common thread [among successful InsurTechs] is a focus on customer interactions and experience," Collier says. InsurTechs — both startups as well as those that have been around awhile — also have begun to realize just how vast the insurance industry is, meaning there are myriad opportunities to build products that can improve the insurance customer experience. Now, InsurTechs that can either provide their customer with instant gratification or enable a partner to offer such speedy service are distinguishing themselves from the pack. "Instant gratification is the new norm," Collier says.

The challenge for startups

…can be that many fail to fully grasp the larger business culture in which they're attempting to operate. Sure, startups bring agility and innovation. But when it comes to the financial services world, being the shiny new toy, as it were, won't necessarily translate into success for a new technology provider. And so many successful InsurTechs are founded by or staffed with people who bring an insurance or risk management background. Such executives can deftly pinpoint processes ripe for modernization while also being able to talk technology with peers who may be less digital-savvy. Earnix CEO Udi Ziv is one example of an insurance man turned technologist. "In the last couple of years, carriers have started to become anxious and wonder, 'are we smart enough and fast enough in how we do things,'" Ziv says. "I think they've realized that they need to be different from a competitive perspective." That anxiety exploded with the COVID-19 pandemic, Ziv says, as insurance carriers recognized that policyholders simply won't pay for coverage they no longer need. "Everyone we're speaking with now is saying, 'we need some sort-of UBI or behavioral-based insurance,'" he says. User-based insurance products are on track to account for a significant portion of the insurance premium pie, he adds. And this is exactly the kind of economic shift that will see some InsurTechs blossom in 2021 while others cower. Ziv believes that Earnix, which recently marked its 20th anniversary, has distinguished itself by being reliable when dealing with mission-critical insurance business functions and being able to deliver quickly when it comes to system integration.

Which InsurTechs are the ones to watch?

The list of companies showcased above was culled from staff research and reporting, recent incubator and accelerator programs, and each one's marketing materials. Three criteria were used to finalize the list:

1. Does the company tell a compelling story?
2. Does the company meet a pressing insurance need?
3. Does the company have powerful partnerships?

All of them met this criterion. None of them paid to be included in this selection. They are listed in alphabetical order; the order in which they appear should not be construed as a ranking. See also:

• Why InsurTech matters more than ever
• How InsurTech will affect operations and claims in 2021
• Opening the door to insurance carrier innovation