Tag Archives: uber

Time to Retire the Term ‘Insurtech’?

When I founded and edited what became known as a “new economy” magazine in 1997, to explore all the strategic possibilities created by the internet, a friend told me a curious thing.

“You know,” he said, “there were magazines with names like Popular Electricity back in the early 1900s, when it was this great new thing. Then electricity just became part of daily life, and the magazines went away.”

Sure enough, after half a dozen fine years, my magazine, Context, faded away, as did all the similar publications, including Business 2.0 and the Industry Standard, which once were so thick with ads that they looked like phone books.

It may now be time to start retiring the term “insurtech,” too.

It’s not that technology is no longer a key driver for the insurance industry. Far from it. In fact, the pace of innovation has been picking up for years as companies have become more knowledgeable about the possibilities of various technologies, about how to incorporate them and about how to innovate, in general. Now, COVID-19 is making the industry step on the accelerator because so many interactions must happen virtually.

The issue is that technology is now so ubiquitous that it’s time to stop treating it as this new, alien thing. Yes, the many technologies now at the industry’s disposal — blockchain, the various flavors of artificial intelligence, etc. — are wildly complex. But so is the laptop or phone you’re using to read this right now, yet you treat your device as a tool, a simple extension of your hand or your brain. It’s time to start thinking of insurance technology — not insurtech — the same way.

We’re solving business problems, not technology problems, as we innovate within our organizations. We want to have the most efficient operations, the smartest underwriting, the fastest and smoothest claims processes for clients. Technology will play a role almost everywhere, often a key role, but the goal isn’t simply to have the best AI or the coolest blockchain application.

The industry has been migrating toward a more balanced view of technology and innovation. You see that, for instance, as companies try to rethink the customer journey, where the focus is squarely on the customer and where technology facilitates much of what happens, but in the background.

Some technologies will still require great attention, in and of themselves. Something like blockchain, for instance, could provide a competitive advantage if you figure it out before your competitors, or it could be an expensive bust for you, so you need to develop a deep understanding of the technology. But even with something like blockchain, you’re starting with that business problem you’re trying to solve.

I suspect the term “insurtech” will play out rather as “digital strategy” did at the consulting firm that published my magazine.

When the late, great Mel Bergstein founded Diamond Management & Technology Consultants in 1994, he had the then-radical idea that digital technology could drive corporate strategy, rather than just be an afterthought. The firm did a lot to popularize that concept, especially when one of our partners, Chunka Mui, co-wrote a best-seller in 1998, “Unleashing the Killer App,” whose subtitle was “Digital Strategies for Market Dominance.”

The notion of digital strategy stayed popular through 2010 or so, I’d say, and plenty of consulting firms will still sell you one, but every strategy has a digital piece to it these days. Try to imagine a strategy that isn’t digital. So, “digital strategy” has gradually become “strategy.”

Likewise, while a few people still talk about “e-commerce,” it mostly has a simpler name: “commerce.” Amazon was treated as a technology company for the longest time even though it sold books. Now, it’s treated as what it is: a retailer (that’s extraordinarily sophisticated in its use of technology) and a provider of technology services through its AWS cloud business.

“Insurtech” hasn’t been around nearly as long as “digital strategy” or “e-commerce,” and the combination of insurance and technology in innovative ways will only pick up speed from here. But the innovation needs to happen as part of, well, the normal innovation process and not as a sort of excursion into foreign territory. So, I think “insurtech” will soon enough be referred to by a different name: “insurance.”

15 Hurdles to Scaling for Driverless Cars

Will the future of driverless cars rhyme with the history of the Segway? The Segway personal transporter was also predicted to revolutionize transportation. Steve Jobs gushed that cities would be redesigned around the device. John Doerr said it would be bigger than the internet. The Segway worked technically but never lived up to its backers’ outsized hopes for market impact. Instead, the Segway was relegated to narrow market niches, like ferrying security guards, warehouse workers and sightseeing tours.

One could well imagine such a fate for driverless cars (a.k.a. AVs, for autonomous vehicles). The technology could work brilliantly and yet get relegated to narrow market niches, like predefined shuttle routes and slow-moving delivery drones.  Some narrow applications, like interstate highway portions of long-haul trucking, could be extremely valuable but nowhere near the atmospheric potential imagined by many—include me, as I described, for example, in “Google’s Driverless Car Is Worth Trillions.”

For AVs to revolutionize transportation, they must reach a high level of industrialization and adoption. They must enable, as a first step, robust, relatively inexpensive Uber-like services in urban and suburban areas. (The industry is coalescing around calling these types of services “transportation as a service,” or TaaS.) In the longer term, AVs must be robust enough to allow for personal ownership and challenge the pervasiveness of personally owned, human-driven cars.

See also: Where Are Driverless Cars Taking Industry?  

This disruptive potential (and therefore enormous value) is motivating hundreds of companies around the world, including some of the biggest and wealthiest, such as Alphabet, Apple, General Motors, Ford, Toyota and SoftBank, to invest many billions of dollars into developing AVs. The work is progressing, with some companies (and regulators) believing that their AVs are “good enough” for pilot testing of commercial AV TaaS services with real customers on public roads in multiple markets, including SingaporePhoenix and Quangzhou.

Will AVs turn out to be revolutionary? What factors might cause them to go the way of the Segway—and derail the hopes (and enormous investments) of those chasing after the bigger prize?

Getting AVs to work well enough is, of course, a non-negotiable prerequisite for future success. It is absolutely necessary but far from sufficient.

In this three-part series, I look beyond the questions of technical feasibility to explore other significant hurdles to the industrialization of AVs. These hurdles fall into four categories: scaling, trust, market viability and secondary effects.

Scaling. Building and proving an AV is a big first step. Scaling it into a fleet-based TaaS business operation is an even bigger step. Here are seven giant hurdles to industrialization related to scaling:

  1. Mass production
  2. Electric charging infrastructure
  3. Mapping
  4. Fleet management and operations
  5. Customer service and experience
  6. Security
  7. Rapid localization

Trust. It is not enough for developers and manufacturers to believe their AVs are good enough for widespread use, they must convince others. To do so, they must overcome three huge hurdles.

  1. Independent verification and validation
  2. Standardization and regulation
  3. Public acceptance

Market Viability. The next three hurdles deal with whether AV-enabled business models work in the short term and the long term, both in beating the competition and other opponents.

  1. Business viability
  2. Stakeholder resistance
  3. Private ownership

See also: Suddenly, Driverless Cars Hit Bumps  

Secondary Effects. We shape our AVs, and afterward our AVs reshape us, to paraphrase Winston Churchill. There will be much to love about the successful industrialization of driverless cars. But, as always is the case with large technology change, there could be huge negative secondary effects. Several possible negative consequences are already foreseeable and raising concern. They represent significant hurdles to industrialization unless successfully anticipated and ameliorated.

  1. Congestion
  2. Job loss

I’ll sketch out these hurdles in two more parts to come.

It’s Time to End Appeals Based on Fear

Consumer attitudes toward the insurance industry are changing faster than ever. Millennials make up the most populous generation today, and with many of them entering their mid- and late thirties, they are shopping for insurance in higher numbers. This tech-savvy generation expects personalized services and demands greater control over their experiences and decisions. Millennial consumers are calling the shots in almost every B2C industry – and insurance is no exception.

The insurance industry traditionally relied on the fear of the unknown as its most powerful sales enabler, but with millennials making decisions based on brand experience, insurers need to turn to emerging technologies to transform and customize the way they reach customers. The status quo is simply unsustainable if they want growth. Forward-looking insurers know that the key to attracting and retaining clients is to leverage predictive technology and provide them with the seamless, smart, digital-first experience they need.

But for this future to become a reality, companies need to implement and use predictive analytics in a way that truly enhances the customer experience. Here are the steps every insurer needs to know before embarking on that journey:

Collect the Right – Not the Most – Data

Knowing the ins and outs of customer needs and behaviors is essential in operating an insurance business, but it is not enough to know the general needs of a customer base. In fact, the majority of consumers are willing to share personal information in exchange for added benefits like enhanced risk protection, risk avoidance or bundled pricing. To deliver personalized service, insurers must collect data at the individual level – and quantity does not always mean quality. The accuracy of predictive analytics relies on the certainty and relevancy of the data those systems are fed. Before doing anything else, insurers must determine exactly what information drives business decisions and collect that data on both individual and grand scale as efficiently as possible.

See also: 3 Ways to Optimize Predictive Analytics  

This is where the Internet of Things (IoT) steps in. As one of the most ground-breaking technologies on the market today, IoT has only just begun to realize its potential in the insurance industry. IoT sensors attached to infrastructure, cars, homes and other insurable items, can feed real-time data back to providers with unprecedented accuracy. Not only does this live feed of data prevent emergencies by identifying potential problems before they arise, the highly precise information acts as a foundation for analytics at a customer-specific level in the next phase of the process.

Get Personal With Predictions

Once insurers are collecting relevant, accurate and individualized data, the next step on the road to customer satisfaction is applying machine learning and AI to that information. The outcomes of this analysis not only determine truths about the current status of an asset or situation but reveal patterns that enable insurance companies to predict what is in store down the road. For an insurer, this predictive knowledge means more accurately being able to evaluate, price and plan for risk – whether evaluating individual portfolios or aggregating data to foresee larger trends in the marketplace.

But as predictive technology becomes more mainstream, the true value of digital foresight will be its ability to offer the millennial customers the deep personalization and hyper-relevance they crave and expect from all their services. By transforming the industry into a predictive and even preventative experience, insurance companies are changing the status quo of fear-based customer relationships and instead leverage technology to make insurance feel tailored and assuring.

Engage With Emerging Technology

The insurance industry is not and never will be based on static, one-time decisions. As risk is calculated on various constantly changing variables, it is essential to continue evolving customer predictions, recommendations and prices based on incoming information. Analyzing both existing and new data from IoT sensors allows companies to pivot strategies in the face of new predictions, enhance underwriting, reduce claim ratio and remain agile to meet the needs of their customers today and tomorrow.

See also: What Comes After Predictive Analytics  

Just as predictions do not stand still, neither should an insurance company’s methods for determining them. In an era of hyper customer relevance, with disruptive players like Uber, Venmo and Mint, millennials have come to expect services that are not only predictive but get deeply personalized in accuracy and usability overtime. The insurance industry has traditionally lagged behind other B2C industries in terms of adoption, however, due to its changing customer base it will have no other choice than to evolve rapidly over the next few years. Placing emerging technologies like AI, machine learning, automation and IoT at the core of business operations now will be key in setting insurance up for continued progression in the future.

Appealing to the new generation of insurance customer is all about offering tailored experiences that cater to their needs and expectations. The insurance industry is in for an acceleration of change to accommodate their new millennial consumer – a change fueled by technology that creates bonds of loyalty and trust via personalization, not fear.

How the Nature of Risk Is Changing

Back in 2001, famed technologist and futurist Ray Kurzweil boldly proclaimed that the human rate of progress was doubling. He added that, by the time the 21st century ends, the progress would feel like 20,000 years’ worth of transition instead of 100.

At the time, Kurzweil’s statement sounded a bit dubious. But with how rapidly technology has transformed over the last two decades, it now seems that the world’s ability to change quickly was drastically underestimated.

We live in an age defined by acceleration, and this incredible pace of change has exceeded many industries’ capacity to handle it. Changes that once took an entire generation for people to adapt to now takes 10 years. The possibilities of this rapidly changing landscape are endless, and so is the risk that comes with it.

The Far Reaches of Risk

It should come as no surprise that risk evolves alongside technology transformation. Advancement is a double-edged sword. It can simultaneously create a greater level of safety for the status quo and change the very nature of risk, forcing insurers to build new coverage solutions to address previously unforeseen concerns.

For instance, autonomous vehicles might be safer drivers than humans, but they’re also vulnerable to cyberattacks and malware. In many cases, driverless cars are blurring the lines of established risk categories. For proof, just take a look at the sharing economy. It’s less than a decade old, yet it’s raised major questions in terms of how coverage works. Are Uber or Lyft vehicles classified as work or personal? And does the coverage shift throughout the day as drivers turn their ride-sharing service on and off? Insurance companies have to find answers for these types of problems on a daily basis.

See also: How to Adapt to the Growing ‘Risk Shift’  

It’s an understandably complex and intimidating concept for many insurance leaders. However, while progress may be rapid, it’s not entirely unpredictable. The future can be bright for those who remain engaged with the changing landscape of risk. Here’s what those leaders can expect:

1. Humans will gain a deeper understanding of risk.

While technology’s race toward the future provides ample opportunity for confusion, it also provides the tools to parse that confusion and come to a better understanding of risk. Telematics, machine learning, data analytics and more all give insurers much greater insight into how risk touches every aspect of life.

Commercial auto insurers are testing the waters of telematics to explore how they can be applied to evaluate individual driving behaviors. Companies can examine individual driving habits to see how those routines inform the kinds of services and discounts they can offer customers. Instances like these are only going to become more common. This type of granular data sharing will have a direct impact on how coverage is constructed and provided in the future.

2. The way humans and technology relate to risk will change.

As automation continues to be integrated into daily life, coverage will have to properly account for and balance the effect computers and humans each have on rates.

Amazon has more than 100,000 automated and robotic systems integrated into its operations working with human employees to maintain efficiency. The online retailer has almost certainly had to consider how to provide coverage for its employees while they work in tandem with heavy machinery, something companies in similar situations will also have to consider.

Regulation for this is still being crafted. Insurers will need to make sure they continue to stay up-to-date on how and when machines can take over from humans and how that will affect risk.

3. Customer service will look a little different.

Thanks to the Internet of Things, insurers will be able to learn about incidents in real time and process claims before a policyholder even gets involved. These instantaneous notifications are clearly useful for insurance companies, but, used correctly, they can also be a major selling point for consumers.

Machine learning could have a similar impact on customer service. It can be used to pinpoint a highly customized plan for every individual without the customer having to do most of the groundwork.

See also: Insurers Grappling With New Risks  

This age of acceleration is intimidating, and it certainly shows no signs of slowing down. Leadership, however, should look at all this innovation as an opportunity, not a threat. Insurers can leverage tech to improve the customer experience from quote to claim, and, as technology advances, so will the tools that help insurers understand risk.

There’s no denying that infrastructure, demographics and risk are all changing at breakneck speed. To keep up, insurers must not just follow change — they need to grab it by its horns and embrace the new before it becomes old hat.

In Age of Disruption, What Is Insurance?

“Somehow we have created a monster, and it’s time to turn it on its head for our customers and think about providing some certainty of protection.” – Inga Beale, CEO, Lloyds of London

In an early-morning plenary session at this year’s InsureTech Connect in Las Vegas, Rick Chavez, partner and head of digital strategy acceleration at Oliver Wyman, described the disruption landscape in insurance succinctly: while the first phase of disruption was about digitization, the next phase will be about people. In his words, “digitization has shifted the balance of power to people,” forcing the insurance industry to radically reorient itself away from solving its own problems toward solving the problems of its customer. It’s about time.

For the 6,000-plus attendees at InsureTech Connect 2018, disruption in insurance has long been described in terms of technology. Chavez rightly urged the audience to expand its definition of disruption and instead conceive of disruption not just as a shift in technology but as a “collision of megatrends”–technological, behavioral and societal–that is reordering the world in which we live, work and operate as businesses. In this new world order, businesses and whole industries are being refashioned in ways that look entirely unfamiliar, insurance included.

This kind of disruption requires that insurance undergo far more than modernization, but a true metamorphosis, not simply shedding its skin of bureaucracy, paper applications and legacy systems but being reborn as an entirely new animal, focused on customers and digitally enabled by continuing technological transformation.

In the new age of disruption …

1. Insurance is data

“Soon each one of us will be generating millions of data sets every day – insurance can be the biggest beneficiary of that” – Vishal Gondal, GOQUii

While Amazon disrupted the way we shop, and Netflix disrupted the way we watch movies, at the end of the day (as Andy G. Simpson pointed out in his Insurance Journal recap of the conference) movies are still movies, and the dish soap, vinyl records and dog food we buy maintain their inherent properties, whether we buy them on Amazon or elsewhere. Insurance, not simply as an industry but as a product, on the other hand is being fundamentally altered by big data.

At its core, “insurance is about using statistics to price risk, which is why data, properly collected and used, can transform the core of the product,” said Daniel Schreiber, CEO of Lemonade, during his plenary session on day 2 of the conference. As copious amounts of data about each and every one of us become ever more available, insurance at the product level– at the dish soap/dog food level–is changing.

While the auto insurance industry has been ahead of the curve in its use of IoT-generated data to underwrite auto policies, some of the most exciting change happening today is in life insurance, as life products are being reconceived by a boon of health data generated by FitBits, genetic testing data, epigenetics, health gamification and other fitness apps. In a panel discussion titled “On the Bleeding Edge: At the Intersection of Life & Health,” JJ Carroll of Swiss RE discussed the imperative of figuring out how to integrate new data sources into underwriting and how doing so will lead to a paradigm shift in how life insurance is bought and sold. “Right now, we underwrite at a single point in time and treat everyone equally going forward,” she explained. With new data sources influencing underwriting, life insurance has the potential to become a dynamic product that uses health and behavior data to adjust premiums over time, personalize products and service offerings and expand coverage to traditionally riskier populations.

Vishal Gandal of GOQuii, a “personalized wellness engine” that is partnering with Max Bupa Insurance and Swiss Re to offer health coaching and health-management tools to customers, believes that integrating data like that generated by GOQuii will “open up new risk pools and provide products to people who couldn’t be covered before.” While some express concern that access to more data, especially epigenetic and genetic data, may exclude people from coverage, Carroll remains confident that it is not insurers who will benefit the most from data sharing, but customers themselves.

See also: Is Insurance Really Ripe for Disruption?  

2. Insurance is in the background

“In the future, insurance will buy itself automatically” – Jay Bergman

Some of the most standout sessions of this year’s InsureTech Connect were not from insurance companies at all, but from businesses either partnering with insurance companies or using insurance-related data to educate their customers about or sell insurance to their customers as a means of delivering more value.

Before unveiling a new car insurance portal that allows customers to monitor their car-related records and access a quote with little to no data entry, Credit Karma CEO Ken Lin began his talk with a conversation around how Credit Karma is “more than just free credit scores,” elucidating all of the additional services they have layered on top of their core product to deliver more value to their customers. Beyond simply announcing a product launch, Lin’s talk was gospel to insurance carriers, demonstrating how a company with a fairly basic core offering (free credit scores) can build a service layer on top to deepen engagement with customers. It’s a concept that touches on what was surely one of the most profound themes of the conference–that, like free credit scores, insurance only need be a small piece of a company’s larger offering. This may mean embedding insurance into the purchase of other products or services (i.e., how travel insurance is often sold) or it may mean doing what Credit Karma has done and layering on a service offering to deepen engagement with customers and make products stickier.

Assaf Wand, CEO of the home insurance company Hippo, spoke to both of these models in his discussion with David Weschler of Comcast about how their two companies are partnering to make insurance smarter and smart homes safer. When asked about what the future of insurance looks like, Wand put it plainly when he said: “Home insurance won’t be sold as insurance. It will be an embedded feature of the smart home.” Jillian Slyfield, who heads the digital economy practice at Aon, a company that is already partnering with companies like Uber and Clutch to insure the next generation of drivers, agrees: “We are embedding insurance into these products today.”

Until this vision is fully realized, companies like Hippo are doing their part to make their insurance products fade into the background as the companies offer additional services for homeowners, “Can I bring you value that you really care about?” Wand asked, “Wintering your home, raking leaves, these are the kinds of things that matter to homeowners.”

3. Insurance is first and foremost a customer experience

“The insurance industry has to redefine our processes… go in reverse, starting with the customer and re-streamlining our processes around them” – Koichi Nagasaki, Sompo

To many outside the insurance industry, the idea of good customer experience may seem unremarkable, but for an industry that has for so long been enamored by the ever-increasing complexity of its own products, redefining processes around customers is like learning a foreign language as a middle-aged adult. It’s hard, and it takes a long time, and a lot of people aren’t up to the task.

The insurance industry has been talking about the need for customer-centricity for a while now, but many companies continue to drag their feet. But customer-centricity is and remains more than a differentiator. It’s now table stakes. How this plays out for the industry will look different for different companies. Some will turn to partnerships with insurtechs and other startups to embed their products into what are already customer-centric experiences and companies. Chavez of Oliver Wyman would rather see the industry “disrupt itself,” as he believes it’s critical that companies maintain the customer relationship. In his plenary sessions, he cited the German energy company Enercity as a company that disrupted itself. Operating in a similarly regulated industry, rather than becoming just a supplier of energy, the company invested heavily in its own digital strategy to become a thought leader in the energy space, to be a trusted adviser to its customer and to deliver an exceptional digital experience that, among other things, leverages blockchain technology to accept bitcoin payments from customers. For Chavez, insurtech is already a bubble, and, “If you want to succeed and thrive in a bubble, make yourself indispensable.” The only way to do this, he believes, is to maintain ownership over the customer experience, because, in today’s digital economy, the customer experience is the product.

But to own the customer experience and succeed will require insurance companies to completely reorient their business practices and processes – to start with the customer and the experience and work backward toward capabilities. In the words of Han Wang of Paladin Cyber, who spoke on a panel about moving from selling products to selling services, “It’s always a questions of what does the customer want? How do they define the problem? And what is the solution?”

4. Insurance is trust

“The world runs on trust. When we live in a society where we have lots of trust, everyone benefits. When this trust goes away, everyone loses.” – Dan Ariely, Lemonade

During a faceoff between incumbents and insurtechs during one conference session, Dylan Bourguignon, CEO of so-sure cinched the debate with a single comment, calling out large insurance carriers: “You want to engage with customers, yet you don’t have their trust. And it’s not like you haven’t had time to earn it.” This, Bourguignon believes, is ultimately why insurtechs will beat the incumbents.

Indeed, the insurtech Lemonade spent a fair amount of stage time preaching the gospel of trust. Dan Ariely, behavioral economist and chief behavior officer at Lemonade, delivered a plenary session entirely devoted to the topic of trust. He spoke about trust from a behavioral standpoint, explaining how trust creates equilibrium in society and how, when trust is violated, the equilibrium is thrown off. Case in point: insurance.

Insurance, he explained, has violated consumer trust and has thrown off the equilibrium–the industry doesn’t trust consumers, and consumers don’t trust the industry, a vulnerability that has left the insurance industry open to the kind of disruption a company like Lemonade poses. As an industry, insurance has incentives not to do the thing it has promised to do, which is to pay out your claims. And while trust is scarcely more important in any industry as it is in insurance, save in an industry like healthcare, the insurance industry is notoriously plagued by two-way distrust.

What makes Lemonade stand out is that it has devised a system that removes the conflict of interest germane to most insurance companies – as a company, it has no incentives to not pay out customer claims. In theory, profits are entirely derived by taking a percentage of the premium; anything left over that does not go to pay out a claim is then donated to charity. The result: If customers are cheating, they aren’t cheating a company, they are cheating a charity. Ariely described several instances where customer even tried to return their claims payments after finding misplaced items they thought had been stolen. “How often does this happen in your companies?” he asked the audience. Silence.

And it’s not just new business models that will remedy the trust issues plaguing insurance. It’s new technology, too. In a panel titled “Blockchain: Building Trust in Insurance,” executives from IBM, Salesforce, Marsh and AAIS discussed how blockchain technology has the capacity to deepen trust across the industry, among customers, carriers, solutions providers and underwriters by providing what Jeff To of Salesforce calls an “immutable source of truth that is trusted among all parties.” Being able to easily access and trust data will have a trickle down effect that will affect everyone, including customers, employees and the larger business as a whole–reducing inefficiencies, increasing application and quote-to-bind speed, eliminating all the hours and money that go into data reconciliation and ultimately making it easier for carriers to deliver a quality customer experience to their customers.

See also: Disruption of Rate-Modeling Process  

While the progress in blockchain has been incremental, the conference panel demoed some promising use cases in which blockchain is already delivering results for customers, one example being acquiring proof of insurance for small businesses or contractors through Marsh’s platform. With blockchain, a process that used to span several days has been reduced to less than a minute. Experiences like these–simple, seamless and instantaneous – are laying the groundwork for carriers to begin the long road to earning back customer trust. Blockchain will likely play an integral role this process.

5. Insurance is a social good

“We need insurance. It is one of the most important products for financial security.” – Dan Ariely, Lemonade

For all of the the naysaying regarding state of the industry that took place at InsureTech Connect, there were plenty of opportunities for the industry to remind itself that it’s not all bad, and its core insurance is something that is incredibly important to the stability of people across the globe. Lemonade’s Schreiber called it a social good, while Ariely told his audience, “We need insurance. It is one of the most important products for financial security.” Similar sentiments were expressed across stages throughout the conference.

In fact, in today’s society, income disparity is at one of the highest points in recent history, stagnating wages are plaguing and diminishing the middle class, more people in the U.S. are living in poverty now than at any point since the Great Depression, the social safety net is shrinking by the minute and more than 40% of Americans don’t have enough money in savings to cover a $400 emergency, so insurance is more important than ever.

For Inga Beale, CEO of Lloyds of London, insurance has a critical role to play in society, “It goes beyond insurance–it’s about giving people money and financial independence,” she said during a fireside chat. She went on to describe findings from recent research conducted by Lloyds, which determined that, by the end of their lives, men in the U.K. are six times better off financially than women. When designed as a tool to provide financial independence and equality for everyone, insurance can play an important role in addressing this disparity. While this has been a focus in emerging markets, financial stability and independence is often assumed in more developed markets, like the U.S. and Europe. In reality, it is a problem facing all markets, and increasingly so. Ace Callwood, CEO of Painless1099, a bank account for freelancers that helps them save money for taxes, agrees that insurance has an important role to play. “It’s our job to get people to a place where they can afford to buy the products we are trying to sell,” he said.

You can find the article originally published here.