Call me a dinosaur, but I don’t get insurtech and I believe so many of them don’t really understand the long tail of certain types of insurance. We do need more technology in the industry for sure, just have to do it right.
I have to wonder what causes the failures. I would agree that the industry can use more technology. These InsurTechs are probably able to create some technologies that work well for the sales & buying process and even the initial pricing of the product. But handling claims is inevitable and that may be their downfall. Some traditional companies have invested heavily in claims handling and they know this can’t be overlooked. Plus handling claims efficiently and dealing with the litigation, that can be avoided, is a moving target that some companies understand much more than others.
Call me a dinosaur, but I don’t get insurtech and I believe so many of them don’t really understand the long tail of certain types of insurance. We do need more technology in the industry for sure, just have to do it right.
I have to wonder what causes the failures. I would agree that the industry can use more technology. These InsurTechs are probably able to create some technologies that work well for the sales & buying process and even the initial pricing of the product. But handling claims is inevitable and that may be their downfall. Some traditional companies have invested heavily in claims handling and they know this can’t be overlooked. Plus handling claims efficiently and dealing with the litigation, that can be avoided, is a moving target that some companies understand much more than others.