Insurtech is supposed to be about security and reliability. But what happens when the very tools carriers rely on, like CrowdStrike, fail? Recently, a significant CrowdStrike blackout left many carriers vulnerable and exposed. This event has raised some serious questions about the risks carriers face when depending solely on big-name technology providers.
The Risks of Relying on Established Technology Giants
When CrowdStrike went down, carriers who had put all their eggs in one basket felt the sting. The blackout was a stark reminder that no system is infallible. Here’s why:
- Single Point of Failure: Relying on one major player for cybersecurity is risky. When CrowdStrike went offline, so did the protection for many carriers.
- Reputation Damage: Carriers not only faced potential breaches but also the risk of losing customer trust. A blackout like this can make customers question the reliability of their insurance provider.
- Financial Impact: Downtime equals lost revenue. The blackout likely resulted in delays, increased risks, and unforeseen costs for carriers.
Why Betting on Startups Could Be the Answer
So, what’s the alternative? The CrowdStrike event highlights why carriers should consider investing in innovative Insurtech startups. Here’s why startups can be a safer bet:
- Agility: Startups are often more nimble, able to adapt and respond faster to issues than big, established companies. They can deploy fixes and updates quickly, minimizing downtime.
- Diverse Solutions: Startups bring fresh perspectives and innovative solutions to the table. By spreading their bets across multiple providers, carriers can avoid putting all their risk in one place.
- Cost-Effective: Startups typically offer competitive pricing and more flexible terms than big players. This means carriers can get the protection they need without breaking the bank.
- Cutting-Edge Technology: Startups often leverage the latest advancements in Insurtech as a service and digital transformation in insurance, offering more advanced and reliable solutions.
The Future for Carriers: Diversify or Risk It All
The CrowdStrike blackout serves as a wake-up call. Relying solely on big-name technology providers may leave carriers vulnerable. In the evolving landscape of Insurtech, it’s clear that diversification is key.
Startups offer carriers an opportunity to hedge their bets, invest in more innovative solutions, and reduce their overall risk. In a world where Insurtech as a service is becoming the norm, carriers should be looking at the next generation of technology providers—those who can offer more resilience and adaptability.
Keyword in first line/last line: Insurtech, technology, Insurtech as a service, digital transformation in insurance
