The Future of Insurance Industry Will Not Be Decided by Insurtechs Alone: Viewpoint

By | August 6, 2020

  • August 6, 2020 at 1:28 pm
    Barry Rabkin says:
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    That would be impossible to do.

    There is no legal, insurance regulated entity called “InsurTech.” There are startup and incumbent insurance firms; there are startup and incumbent technology firms. That’s it.

    There is also the reality that an insurance firm remains an insurance firm regardless of what technologies it uses to get-and-keep customers.

    So, the future of the insurance industry will ONLY be determined by insurance firms.

    • August 12, 2020 at 1:33 pm
      Jim Masiello says:
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      Independent Agents need to drop the term “Agent” and start using the term “Insurance Advisor”. Also a good agent who communicates and rounds clients insurance accounts will significantly increase retention.
      AND . . . . using the term “customers” creates a mind set and does not promote the relationship strength of a professional Advisor.
      Time for IAs to identify as professionals focused on “client” relationships!

  • August 6, 2020 at 1:30 pm
    Agency says:
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    The InsureTech’s who are trying to sell insurance online are not deciding any future of our industry. They are around for a few years, will dupe a lot of investors and will move on to their next scam.

  • August 6, 2020 at 1:48 pm
    bob says:
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    As a 40+ year member of the insurance community is was about time some new blood and fresh ideas came into the industry to challenge the tradition bound dinosaurs. As was with captives and growth of self insurance pools the new carriers with new ideas led by talented leaders will survive and prosper. And change the business.

  • August 7, 2020 at 6:38 am
    knowall says:
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    They are bound by the same consumer protection laws and insurance oversight in every state or country, like the rest of us.

    ‘Gaps in coverage’ are still just that.

    One of the biggest problems I’ve seen is that the average, or even above- average consumer, does not understand risk management. They do believe an insurance agent they can look in the eye and feel they know what they are doing. (There’s good and bad to that.)

  • August 7, 2020 at 4:21 pm
    Observor says:
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    The challenge that the new start ups will encounter is how to grow profitably with relatively low surplus numbers.

    With insurance, they many have a slight advantage in some internet delivery of the product, but their challenge is that they sell the same product that their financially stronger competitors market at roughly the same price points. Amazon can sell their products cheaper than bricks and mortar stores because they do not have to rent retail space and pay employees at those spaces. With insurance, it would be difficult for a start up to compete with much larger competitors who have name recognition as well as the advantage of great size to minimize the impact of fixed expenses for setting up investments in IT, claims and marketing.

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