While insurtechs are struggling, established brokerages have deep industry knowledge and solid businesses from which to build and evolve technology solutions.
As technology demonstrates its potential to transform the insurance industry, some insurers and startups are realizing it’s not a zero-sum game: they are stronger together than alone.
WeFox raised money at a valuation of $4.5 billion. My first reaction is the same one I had when Root raised funds at a valuation of $3.65 billion: This makes no sense.
Insurers with future-ready operations are 2.8 times more profitable and 1.7 times more efficient than their peers. Yet only one in 10 insurers is at that stage.
Integrating a new feature, for example to provide dynamic quoting and pricing, usually takes months. Hyperautomation, such as low-code, provides robust solutions faster.
I hope the next wave of insurtech players will have more robust insurance fundamentals and will not pretend that insurance ignorance is a competitive advantage.
An announcement by a prominent venture firm suggests we have reached peak Silicon Valley and, more broadly, are headed toward a more decentralized model for innovation.