by Laura Cain on June 22, 2016
For decades the insurance industry has lacked meaningful innovation. Complex regulation, low-margin products, and intense capital requirements have shielded incumbent insurance companies from disruption. Tied to outdated processes and systems, these companies are often focused on maintaining the status quo rather than improving their underlying business models.
However, insurance companies and investors alike have taken note of the disruption that occurred in lending. Once seen as impenetrable, the banking industry is now facing unprecedented pressure to innovate, which stems from the exponential growth of well-funded alternative lending startups. While a culture of change has yet to be fully embraced by incumbent insurance carriers, carriers are actively monitoring the startup space – standing up innovation departments and corporate VC arms.
This shift towards innovation among incumbent carriers is creating opportunities for technology companies in the insurance space. By piggy-backing off of established insurance companies through partnerships, the barriers to entry are significantly reduced.
While insuretech has become a major area of interest among VCs, we recognize that few investors in the space have comprehensive knowledge of the industry. To better understand the complexities and opportunities in the space, we have compiled the research report posted below. The report provides an overview of the auto, homeowners, life, and health insurance sectors. We hope you find the presentation insightful and welcome comments and questions.
To download the full presentation click here.