RiskGenius Blog

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It's been a good ride over the last year for the insurance technology ("insurtech") community. In 2015, insurtech raised over $2.6 billion. In the first quarter of 2016, insurtech broke a record for money raised.

And yet, I am looking at the companies that are emerging from these fundraise events, and I keep thinking, "Really, that's it?"

There have been some outliers. Lemonade and other peer to peer companies are interesting to me because they have an opportunity to create fundamentally new technology that connects people and just happens to also provide insurance through the connection. I am still awed by the magic of Uber and I hope a Peer to Peer company can replicate that experience.

But when it comes to other insurtech innovations emerging with funding rounds -- well, I am a bit underwhelmed. I call these companies the Aggregators and the Process Improvers. 

Last week I highlighted Lemonade as a company to keep an eye on in the Peer to Peer insurance space.  Lemonade claims to be the first peer sharing insurance carrier in the United States.  However, Besurance, based out of Calgary, Canada, is a P2P risk sharing company claiming to be the first of its kind in North America. According to their website Besurance Corporation is made up of three different divisions: Besure, Besure Agency and Besure.x.  What are these different divisions and how does it differ from Lemonade? 

There has been a lot of discussion lately in the media and between agents about insurance technology and how big changes are coming to the insurance industry. Recently we have been focusing on insurance technology start-ups, their growth, and how they are affecting the current landscape. But what should agents, brokers and companies do about it?

Adopt technological innovations, of course.

Embracing technology will help agents, companies, and brokers to meet rising policyholder needs and expectations. There is a specific need for innovation in companies' IT infrastructure to improve the collection, storage, and use of data.  Read on for specific technology that can be adopted by insurance professionals ready to compete with insurance technology companies hoping to disrupt the industry.

Chris's Note:  I asked Clara Stahl, RiskGenius Marketing Analyst, to write about how she views insurance.  While there are many articles claiming to understand millennials and insurance, I thought it would be helpful to hear directly from a millennial.  Her message is simple:  the traditional manner of selling insurance won't work anymore.  Make sure you read to the end, where Clara provides tips for all insurance agents selling to millennials.  

As a person in my twenties, I do not have many insurance needs. I have my health insurance plan, my renters insurance, and soon I will be needing an auto-insurance policy. Despite my current needs, I cannot tell you the countless times I have gotten unsolicited phone calls and emails from agents and insurance companies (my current providers and others) about things that I am not yet ready to buy.