Insurers are trying out new technologies and partnerships to change the way they work, but change doesn’t come easily. Matteo Carbone, founder of the IoT Insurance Observatory, says real progress happens when all parts of the insurance process work together, not just when a new technology is introduced.
Carbone explains that insurance is made up of many connected steps, each relying on the others. A new technology might add value in one area, but if the different parts don’t fit well, the impact stays limited. He points to personal auto telematics as an example. In North America, usage-based insurance started mainly as a way to price policies better. But telematics has the potential to affect other parts like sales, compliance, and claims too. If companies only use it for pricing without involving agents or compliance teams, the results aren’t as strong. Companies like Progressive succeeded because they changed their whole operation around telematics, while others struggled because they didn’t.
Carbone also highlights how important the right partnerships are. Many insurers spend too much time looking for the perfect data or tech provider instead of a partner who shares their values and goals. Good partnerships rely on openness and working closely together, more than just having the latest technology.
He notes that the same technology can bring very different outcomes depending on the company’s culture and how well vendors understand the real challenges insurers face. It’s not just about tech, but about people working well together.
Turning plans into results is tough. Carbone says it’s not just about installing new tools but about leadership. Companies must move beyond old habits and show that new ideas can bring real value. It also takes patience and focus. If a project takes too long to show results, people might lose interest. So, having small wins along the way is key to keeping the team motivated and on track.
When it comes to true innovation, Carbone sees that a few leaders make the difference. These are teams willing to try new things without waiting for permission from top executives. Their early success often inspires others to follow, creating a cycle of improvement.
In the end, Carbone believes that having a supportive culture and strong leadership matters more than budget or size. Companies encouraging creativity and risk-taking, while keeping teams focused, have the best chance to succeed.
As insurers explore tools like IoT, telematics, and AI, the lesson is clear: just having technology isn’t enough. Success depends on working together, steady progress, and leaders willing to take bold steps. This combination will help insurance companies move forward in an industry where everything is closely connected and tightly regulated.