What is Insurtech and Why Should Independent Agents Care? – ANR48
There is nothing sexier in the insurance industry right now, then insurtech.
Venture capitalists invested over $1B into insurtech startups in the first 6 months of 2016 alone.
That’s a lot of cheddar.
I don’t know a ton about venture capitalists, but what I do know, is they don’t invest $1B without a strong belief in the idea and business model with which they are investing.
Both venture capital firms and insurtech startups, alike, are filled with smart people. These smart people are looking to “Disrupt” the traditional independent agent-based insurance distribution system.
We independent agents would be smart to keep one eye focused on the happenings within the insurtech space.
In order to do that, it makes sense for us to take a step back and first answer, “What is insurtech?”
Maybe even, more important, “Why should independent agents care about the insurtech movement?”
In this episode of Agency Nation Radio, Marty and I answer this question and much more…
“What is Insurtech?” as defined by Investopedia
Insurtech refers to the use of technology innovations designed to squeeze out savings and efficiency from the current insurance industry model. Insurtech is a portmanteau of “insurance” and “technology” that was inspired by the term Fintech. The belief driving insurtech companies is that the insurance industry is ripe for innovation and disruption. Insurtech is exploring avenues that large insurance firms have less incentive to exploit, such as offering ultra-customized policies, social insurance, and using new streams of data from internet-enabled devices to dynamically price premiums according to observed behavior. Insurtech Definition.
Here is an article we reference from CB Insights on small business insurance insurtech startups: Who’s Who In The Rise Of Small Business Insurance Tech Startups
Do you think TrustedChoice.com should fall under the “Insurtech” moniker?
Let us know in the comments below…
Want to read more about Insurtech? Subscribe to Insurtech IA on Medium.
In this second half of this episode, Marty asks the question, “Should new producers pass on hard fought relationship-based sales and focus on blue ocean hard-to-place risks?”
Neither of us have a great answer to this question.
We want to hear from you. After to listen to episode 48, please come back and let us know your thoughts on where new producers should focus their time and energy.
P.S. Don’t miss the one-of-a-kind insurance digital marketing and sales conference of 2017. Get your ticket to Agency Nation Elevate 2017 today!
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