Nationwide, the big captive company just announced they were going to go the Independent Agency route. There is far more value than a geek modeled company pulling a scam on the public.
To be accurate, there is no such legal, regulated entity called an “InsurTech.” There are startup insurance firms and incumbent insurance firms (regardless of how either type uses technology or what technology either type of firm uses) and their are startup technology firms and incumbent technology firms.
The technology-dependent startup insurance firms (and they are INSURANCE firms if they must get an insurance license and comply with insurance regulations) obviously have high levels of entrepreneurial enthusiasm and high levels of investments – neither of which means an ounce of crap when it comes to attracting market share or competing on the basis of insurance industry metrics (and not on the basis of technology industry metrics).
Thankfully, 99.9%+ of the technology-dependent startup insurance firms will disappear into the history books of the insurance industry. These startups haven’t reached into an alternative universe and extracted technologies or applications of technologies that incumbent insurers couldn’t do … and shouldn’t use until each incumbent insurer believes they can do so in a manner that generates profit (according to insurance industry metrics) and does not put their existing book of clients at risk.
As long as the new breed (and some older) sell on price and only price, they will continue to sink themselves. Also to the point, the online sellers are focusing on the best price, why would an agent want to compete with that when they can differentiate themselves, provide a higher level of service and win amazing policyholder loyalty. More often than not, the reason why insurance is sold for price is because the agent doesn’t know what he or she is selling. They become quote factories rather than insurance professionals. They either change, or they kill their own jobs.
Nationwide, the big captive company just announced they were going to go the Independent Agency route. There is far more value than a geek modeled company pulling a scam on the public.
To be accurate, there is no such legal, regulated entity called an “InsurTech.” There are startup insurance firms and incumbent insurance firms (regardless of how either type uses technology or what technology either type of firm uses) and their are startup technology firms and incumbent technology firms.
The technology-dependent startup insurance firms (and they are INSURANCE firms if they must get an insurance license and comply with insurance regulations) obviously have high levels of entrepreneurial enthusiasm and high levels of investments – neither of which means an ounce of crap when it comes to attracting market share or competing on the basis of insurance industry metrics (and not on the basis of technology industry metrics).
Thankfully, 99.9%+ of the technology-dependent startup insurance firms will disappear into the history books of the insurance industry. These startups haven’t reached into an alternative universe and extracted technologies or applications of technologies that incumbent insurers couldn’t do … and shouldn’t use until each incumbent insurer believes they can do so in a manner that generates profit (according to insurance industry metrics) and does not put their existing book of clients at risk.
We see on IJ all the stories that the start ups are revolutionizing the industry. Not so much.
As long as the new breed (and some older) sell on price and only price, they will continue to sink themselves. Also to the point, the online sellers are focusing on the best price, why would an agent want to compete with that when they can differentiate themselves, provide a higher level of service and win amazing policyholder loyalty. More often than not, the reason why insurance is sold for price is because the agent doesn’t know what he or she is selling. They become quote factories rather than insurance professionals. They either change, or they kill their own jobs.