The Largest Insurers Are Building Incumbents to Ride the InsurTech Wave InsurTech has a relatively young, but quite a colorful history. There are already at least 80 hot InsurTech startups shaking up the trillion-dollar industry. The insurance industry is one of the most massive and complex ecosystems with large and powerful corporate players. In fact, it is the biggest industry in the US with net premiums of $1.1 trillion in 2014. Insurance carriers and related activities contributed $421.4 billion, or 2.5% of the United States’ gross domestic product in 2013.
The Insurance Renaissance, Part 2 A few weeks ago, in our opening blog series on the Insurance Renaissance, we discussed how the climate of change we saw in the Renaissance of the 1400s holds lessons for the current state of insurance. In both periods, we see the epicenters of change and innovation. For insurers, the Renaissance is more than an analogy. It represents a real pattern of cultural shift with insurance business implications. Its hallmarks are now repeating themselves. For example, today we see digital use and globalization as potent business drivers.
A deluge of geolocation data is coming. Are you prepared? Consumers have a love/hate relationship with sharing their location ― more precisely, sharing their geolocation. With services such as Facebook and Twitter, location sharing is “almost” a default option, whereas sites such as PleaseRobMe.com warn about the dangers of over-sharing our location information. Putting consumer interest in the sliding scale of “sharing too much” aside, for insurers, the relevance and importance of consumer geolocation data is undeniable.
More than 140 Million UBI Policies by 2023 Emerging technologies such as telematics and the connected car are painting a positive picture of the future usage based insurance market, according to a new report from IHS Automotive. In its study, “Auto Tech Report–Usage Based Insurance-2016”, IHS projects the number of globally distributed UBI policies will surpass 142 million by 2023. This compared to 12 million last year and 7.7 million in 2014.
Insurer customer satisfaction tied to online buying experience If your company is a leader when it comes to online shopping, then the chances are good that you’re also seeing premium growth, according to the J.D. Power 2016 U.S. Insurance Shopping Study. The study measured auto insurance shopping, purchase behavior and satisfaction for customers who had recently purchased insurance online.
Dynamis – If Insurance, Then Blockchain InsurTech’s hottest buzzwords are ‘blockchain’ and ‘Peer-to-Peer Insurance’. Throw in some more terms, like ‘Smart Contracts’ and ‘social fingerprints’, and what do you get? To find out, Rick Huckstep talks to Dynamis, the world’s “first” Peer-to-Peer Insurer on a blockchain
Can Insurers Afford Outside Disruption? For many years, as the information revolution and Silicon Valley energy rolled through industry after industry, the insurance sector watched from the sidelines. Business models remained unchanged, and existing organizations didn’t face severe existential threats. Of course, the price of such stability was an absence of the adventure and daring that accompanied startup culture.
Teambrella – A Peer to Peer Insurance System Using Bitcoin Teambrella is the first peer-to-peer insurance service backed with Bitcoin and the creators say its users have exclusive control over every aspect of insurance: rules, premiums, claims and reimbursements making insurance fair and transparent. In a recent whitepaper, the writers, Alex Paperno, Vlad Kravchuk and Eugene Porubaev, say that most insurance services are inefficient and non-transparent and they say they have designed a way to solve these issues by implementing a system that provides peer to peer insurance which Bitcoin Wallets play an integral part of the design.
InsurTech- Why Insurance is next prime focus? Before the advent of underwriting in London’s coffee houses in the 1600’s, civilizations used various mechanisms to provide financial protection within their communities. Since then, the business model of insurance has not seen any significant change in 50-plus years (until the arrival of internet), and this is due to several key factors, including: