Something interesting is going on in the insurtech space that I thought I would point out.
It feels like insurtech is maturing.
I am on a plane to California typing this out. It's my second week in a row visiting San Francisco. I am not attending a conference. Instead, I will be presenting to an Insurance Company's Board and Executive Leadership for the second week in a row. Quietly, I am finding more insurance companies realizing that they can partner now and improve their operations significantly with the aid of a newer tech firm, like RiskGenius.
This reminds me a lot of a goldrush, which I have alluded to in the past. First, someone discovers gold. In the insurtech world, mining companies like Lemonade, Slice and Trov have realized that insurance customers can be acquired online. Traditional insurance carriers and brokers are also playing catch up in this space.
But these traditional carriers and brokers realize they have a problem. They can't respond quickly while utilizing the backend technology systems that were created over twenty years ago. Whereas Lemonade can build from the ground up, traditional carriers and brokers can't just start fresh. The legacy applications supporting these traditional carriers and brokers store valuable data.
Enter the pickaxe insurtechs.
The pickaxe insurtechs are those companies that are helping traditional insurance companies mine their data and present it in a more accessible online application. AskKodiak is a great example. The AskKodiak team has created a better way for insurance companies to share risk appetite with brokers.
RiskGenius helps insurance carriers and brokers take forms and endorsements and sort them out with Artificial Intelligence into something useable.
So, this is a prediction. The bets have already been placed on the insurtech miners. But I think you will start to see more partnerships between traditional insurance companies and pickaxe insurtech companies.
During the CB Insights webinar last week, I asked a loaded question of Matthew Wong: "are you seeing more investments in back office (operations) technology." Wong said he was not seeing this occuring. So who knows; maybe I am wrong.
What say you?