Members from several insurtechs, including Boost, Branch, Clearcover, Lemonade and Root Insurance, published an open letter to the insurance industry announcing the launch of the InsurTech Coalition, a trade organization working to shape the future of insurance.
The letter states that the Coalition’s formation comes at a time when the insurance industry is experiencing change with new ideas challenging old business models as telematics and data science are altering the industry’s understanding of risk. New technologies and artificial intelligence are also changing the way customers buy insurance, according to a Coalition press release.
“Big changes bring tremendous opportunities, and technology-focused insurance (insurtech) companies are at the forefront of this powerful shift in the insurance landscape,” the letter says. “Our coalition aims to foster responsible innovation while furthering the collective efforts to provide the best possible insurance experiences to our customers.”
The Coalition has core tenets and commitments for members to use technology responsibly in insurance and empower modern consumers with the tools they need to protect themselves, their businesses and their families. It also aims to provide transparency in pricing and customer experience, re-imagine insurance products to manage risk efficiently, and make insurance products more available, affordable and accessible.
“One of insurtech’s biggest challenges is to help shape the insurance landscape while carefully considering the interests of all stakeholders: employees, regulators, government entities, and—most importantly—customers,” the letter says. “We believe the insurtech Coalition answers this challenge.”
The Coalition said in a press release that it is committed to the responsible use of technology in insurance and in assisting regulators to build frameworks for new and emerging technologies. Mayer Brown LLP is advising the insurtech Coalition.
“Our agility and ability to serve the ever-changing needs of today’s customers through cutting-edge technology position this group as the voice for the future of the industry,” the letter says.
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