The one of insurance is among the industry that late and with greater difficulty is tackling the change brought by technological innovation. There is a reason that goes beyond cultural resistance, says Clara Sieg, partner of Revolution Ventures, a leading venture capital fund which is focusing a lot on insur-tech startups, in an interview with “Insurance Innovation Reporter”. And the reason is the rules that should be well known in order to move bringing change.
“Our company has made a number of bets on different things that touch directly or indirectly the insurance industry. We also have much expertise on the regulation of the sector, to refine which we invested so much time and energy. One of the reasons why there is no rapid change in the insurance industry (and is one of the last industries to be disrupetd), is that it is a highly regulated industry, and for good reason. For this reason, we must have deep understanding of how the industry works to know then what and how technologies can work.”
Among the technologies that can work there are, according to Sieg, those addressed to change the distribution patterns of the policies, which must be brought online, overcoming the network organization of agents as configured today. The agents will remain part of the distribution process, but in a different way, definitely not for the consumer sector.
On the other hand, as she says there are 350,000 registered agents in the US, the average age is 60. Many of them will soon be retired, while becoming more and more numerous and relevant, the mass of young Millennials who do not wants to interact with an agent, but want to search and find things online and by themselves.
Policy Genius, an online broker data-driven, startup that recently raised an investment of $ 21 million includes among its investors Revolution Ventures and is the typical example of a startup that investors like.
” PolicyGenius is transforming the direct-to-consumer sector with online tools for choice and convenience. Its online tools allow consumers to make the right decisions. In this way PolicyGenius is bringing transparency in the insurance sector, giving way for consumers to make informed decisions for their coverage needs in a faster, better and cheaper way”.
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