There should be a sentence before this which lists two items or things. The "former" refers to the first item, the "latter" refers to the second item. It would be handy if you could tell us what came before the text you provided. Imagine a fashion company, "insiders" would be employees and designers who have "inside" knowledge of the business. Outsiders would be independent people outside the business who are on their own maybe, and aren´t close to knowing about the big decisions going on, or the latest trends. They have to make their own style.

The former are driven by insiders to prevent others from copying the insiders' style. The latter are created by outsiders trying to invent alternative styles to the mainstream ( article about fashion). I cannot tell you exactly what "former" and "latter" mean in this context, because these are words that talk about ideas in the previous sentence. The former is the first one listed in that sentence and the latter is the second. Here is an example. I have two brothers named Danny and Sam. The former is an Uber driver, the latter is a high school student. In this example, "the former" is Danny and "the latter" is Sam. The terms "insiders" and "outsiders" are used when talking about groups of people, especially exclusive groups. Insiders are the members of the group, and outsiders are everyone else. It could be an official group (like a club) or an unofficial group (like the "cool kids").