Sepoy-logo
No Result
View All Result
Thursday, December 7, 2023
  • Home
  • News
  • Business
  • Health
  • Tech
  • Lifestyle
  • Economy
  • Crypto
  • Travel
  • Home
  • News
  • Business
  • Health
  • Tech
  • Lifestyle
  • Economy
  • Crypto
  • Travel
No Result
View All Result
SEPOY.NET
No Result
View All Result
Home Business

Editorial: Why you shouldn’t be an insurtech

Nicholas by Nicholas
November 16, 2022
in Business
0
Editorial: Why you shouldn’t be an insurtech

“What we’ve told literally all our clients over the last year is do not talk about being an insurtech,” MarshBerry managing director Gerard Vecchio said while appearing on a panel at the October Arizona gathering.

Vecchio, a 30-year insurance industry veteran, likened the “burst in the insurtech bubble” to fallout from the dot com boom days.

Insurtechs are “not changing the fundamental nature” of insurance, Chubb CEO Evan Greenberg said at another event a year prior.

Read more: Chubb – Everything you need to know

This was a sentiment perhaps not shared by a large portion of his audience, because Greenberg was speaking at Insuretech Connect, an annual conference that regularly draws thousands of insurtech enthusiasts and organizations to Las Vegas, Nevada.

Insurtech is “just hype”, Greenberg told them, nevertheless.

The industry leader must have watched unsurprised, then, as this year – admittedly in the face of a worsening economic outlook – some insurtechs scrambled to make layoffs in the face of a tough path to profitability, scrutinous investors, mischannelled growth, and a disappointing stock performance for those that have gone public.

And it’s not just insurtech. The tech sector more broadly has been facing up to some whopping layoffs and turbulence, with giants Amazon, Twitter and Facebook seemingly not immune.

Doesn’t seem like the best time to be putting on that insur ‘tech’ label, right?

Well, yes and no. It depends on you and your business.

We have seen some insurtechs come in and find very real and untapped gaps in the market and, dare I say it, drive change in areas like usage-based insurance and the gig economy to name a couple.

Purse strings have tightened, but funding has not dried up for everyone. While total global insurtech funding continued to shrink into Q3, the quarter did see the second-highest number of seed funding deals ever recorded, while mega-round funding of $1.2 billion was more than double that of a difficult second quarter.

The strongest businesses almost inevitably will survive the “Darwinian scythe” – as Gallagher Re head of insurtech Andrew Johnston has put it – and pull through. The level of achievement they reach is yet to be seen, but there will more than likely be success stories.

Read more: The insurtech “hot air balloon” has a tear

Losses, too, are not unusual for young growth-focused businesses and do not necessarily indicate failure if capital believes the company will achieve more in the longer term and the appropriate pivots are made.

In Johnston’s words, insurtechs have increasingly left behind the “hubristic rhetoric” of disrupting the industry. Aviva and Lemonade’s UK partnership could be seen as a watershed moment.

Insurtechs may not have proved mega disruptors or fundamental insurance changers yet, but many have proven innovators – and have probably pushed the industry to work harder and faster in the face of loud competition.

Let’s be real, though. Most good insurance businesses don’t need to reinvent the wheel to succeed.

They may use technology in great ways to their advantage. They may “delight” clients and partners.  They may build an excellent business. They may sell hard to find products. They may use an app or a website.

But what fundamental problem are they looking to solve? And do they need to be insurtech to do it?

If you really do have a never-before-seen proposition, presumably tech enabled, that sets you ahead of the crowd then why not call yourself an insurtech. If you’re a frontrunner to address a gulf-sized protection gap or a massive problem for clients or the market, then perhaps the tag might be for you.

Others, however, may want to think twice about who they are and what they’re trying to achieve by slipping on the label. Particularly distributors and MGAs.

Ask yourself: should my business be an insurtech? Is this going to help me?

It may be more sensible to “avoid the noise”, as Vecchio put it, and effectively focus on talking about what your business can do, rather than putting yourself into a bucket you don’t need to be in.

READ ALSO

Floods, wildfires: How an incorrect address cost a broker his job

U.S.-based insurance provider to acquire Sutton Special Risk

Tags: insurtechinsurtech brandinginsurtech insurance business

Related Posts

Floods, wildfires: How an incorrect address cost a broker his job
Business

Floods, wildfires: How an incorrect address cost a broker his job

December 6, 2023
U.S.-based insurance provider to acquire Sutton Special Risk
Business

U.S.-based insurance provider to acquire Sutton Special Risk

December 6, 2023
Trufla and Vertafore Canada Partner to offer an integrated experience that will enhance broker AI and customer insight capabilities
Business

Trufla and Vertafore Canada Partner to offer an integrated experience that will enhance broker AI and customer insight capabilities

December 6, 2023
Hacker U, leaked nudes and AI: predicting 2024 cyber threats
Business

Hacker U, leaked nudes and AI: predicting 2024 cyber threats

December 5, 2023
Is your board looking at their own diversity?
Business

Is your board looking at their own diversity?

December 5, 2023
How P&C investment returns will impact carriers in 2024
Business

How P&C investment returns will impact carriers in 2024

December 5, 2023
Next Post
Matthias Heine’s book “Broken Words?”

Matthias Heine's book "Broken Words?"

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

POPULAR NEWS

Roblox Is Unbreakable Trello Is this safe?

Roblox Is Unbreakable Trello Is this safe?

November 4, 2022
Discord Registered Games  Discord Registered Gaming You need to join the Club

Discord Registered Games Discord Registered Gaming You need to join the Club

November 4, 2022
How To Chose the Right Data Analytics Program

How To Chose the Right Data Analytics Program

November 4, 2022
Heavy explosion on market square in Halle – three injured

Heavy explosion on market square in Halle – three injured

November 4, 2022

Shivon Zilis Wiki, Height, Age, Boyfriend, Husband, Family, Biography & More

July 11, 2022

EDITOR'S PICK

How to apply for a Turkey Visa for Saint Lucia Citizens

How to apply for a Turkey Visa for Saint Lucia Citizens

January 6, 2023

The Best Marilyn Monroe Books to Read Before Seeing ‘Blonde’ This Fall

August 4, 2022

What is viral marketing: the Ultimate Guide

June 24, 2022

How brokers can prevent D&O clients from getting burned for greenwashing

September 23, 2022

About

Sepoy.net is a perfect place for people who want daily updates on news related to business, technology, entertainment, health, cryptocurrency etc.

Contact: [email protected]

Major Categories

News

Business

Tech

Economy

 

Recent Posts

  • Excessive smartphone use linked to mental health risks in adolescents, study indicates
  • Elfmeterschießen im DFB-Pokal: Hertha BSC bezwingt HSV nach Nervenkrimi
  • How to Protect Your Business Assets During a Divorce

Pages

  • About Us
  • Contact Us
  • Disclaimer
  • DMCA
  • Home
  • Privacy Policy

© 2023 Sepoy.net

No Result
View All Result
  • Home
  • Business
  • News
  • Health
  • Tech
  • Science
  • Lifestyle
  • Travel

© 2023 Sepoy.net

x