We love talking about insurtech startup winners, but what about the losers?
What about the graveyard of companies who trumpeted their role in the demise of the independent insurance agent, which now no longer exist?
On this episode of Agency Nation Radio, we examine an article from CBInsights and explain how insurtech startups die:
As you can see, the article from CBInsights breaks down the differences between Esurance, (the online giant bought by AllState) and eCoverage, (who you mostly likely have never heard of before).
There is a great quote from one of the co-founders of eCoverage at the end of the article which perfectly surmises “How InsurTech Startups Die”:
Their take on us was, “They’re (eCoverage) just a bunch of tech guys, who don’t know anything about insurance” and our take on them was “They’re just insurance guys, who don’t know anything about technology.”
Herein lies our my position:
[tweet_box design=”default” float=”none” excerpt=”In order for an #InsurTech startup to have any chance of survival, there must be inherent insurance expertise.”]In order for an InsurTech startup to have any chance of survival, there must be inherent insurance expertise.[/tweet_box]
You can hire an expertise in technology.
You can hire design professionals.
You can hire great marketers.
In the insurance industry, you must know insurance.
The InsurTech startups that I see flame and fall most often have one thing in common, a lack of deep insurance industry knowledge and/or experience.
That’s not to say that insurance knowledge and experience guarantees success. That certainly is not true.
The startup world is random and cruel. However, attempting “Disrupt” the insurance industry, with being part of the insurance industry first, has failure written all over it.
Here are two solid additional reads on the InsurTech:
- 3 Reasons Why P2P Insurtech Start-ups Will Not Disrupt the Insurance Industry
- How $2.9 Billion In InsurTech Investments Is Transforming Our Industry…