InsureTech is a wonderful thing that can bring efficiencies in many areas of insurance operations, but it’s won’t beat out the local insurance agency system on the quality of service. The local agent is part of the community, he or she has a vested interested in making sure their own are taken care off. Silicon Valley is only looking to please venture capitalist, this is where things crash, also the best and most profitable policyholders don’t buy insurance online. They know better, even the high earning tech workers go to personalized insurance agents. The worst high loss ratio policyholders buy online and this is why online insurance sellers struggle with loss ratio and rates.
Let’s just see if insurtechs can match or beat an established insurer and their agency’s response to a calamity such as Hurricane Florence. They cannot do it. Where are they going to get “boots on the ground” in short order? Time and again I’ve seen agents and companies go the extra mile for customers trying to recover from a disaster. Tech has its place in improving claims handling but you’ve got to have the resources there and at the ready. I am guessing that most insurtechs are shocked! … shocked! to find out that there are claims to pay and customers to help in a catastrophe.
InsureTech is a wonderful thing that can bring efficiencies in many areas of insurance operations, but it’s won’t beat out the local insurance agency system on the quality of service. The local agent is part of the community, he or she has a vested interested in making sure their own are taken care off. Silicon Valley is only looking to please venture capitalist, this is where things crash, also the best and most profitable policyholders don’t buy insurance online. They know better, even the high earning tech workers go to personalized insurance agents. The worst high loss ratio policyholders buy online and this is why online insurance sellers struggle with loss ratio and rates.
Let’s just see if insurtechs can match or beat an established insurer and their agency’s response to a calamity such as Hurricane Florence. They cannot do it. Where are they going to get “boots on the ground” in short order? Time and again I’ve seen agents and companies go the extra mile for customers trying to recover from a disaster. Tech has its place in improving claims handling but you’ve got to have the resources there and at the ready. I am guessing that most insurtechs are shocked! … shocked! to find out that there are claims to pay and customers to help in a catastrophe.