3 things to watch out for your industry
Entrepreneurs in any field can learn from the changes the insurance industry is experiencing. For starters, these three conditions signal an industry is ripe for tech disruption:
A shift in customer preferences. Thanks to companies like Geico, customers went from being wary about applying for insurance online to expecting to handle almost everything online.
Expansion of funding options. It used to take a lot of capital to make an insurance company work, meaning it wasn’t an accessible industry for startups. In the last few years, though, funding has become available thanks to increased use of reinsurers to distribute risk.
The availability of new technology or data. Insurance companies live and die by the accuracy of their underwriting. Today’s data processing technology, combined with the wealth of publicly available data, mean that insurers can underwrite more accurately than ever, can control their loss ratios and can pass the savings along to customers.