By FINTECH Books Contributor,Shwetank Verma
Insurance globally is an industry with scale, with USD 4.1 trillion dollars of premium written in 2015 alone. It is also an industry on the cusp of change- attracting investor interest in record numbers with investments totalling USD. 1.4 billion on insurtech firms in just the first three quarters of 2016
However, as I have interacted with various start-ups, it has become clear that the breadth and scale of the opportunity is not clear to many of them. The mental model of ‘insurtech’ seems to be limited to the claims part of the value chain only. In this article, I outline a 5 C framework to help start-ups navigate the insurance opportunity landscape. I hope to convince more start-ups to have a clear strategy for selling to insurance carriers.
The 5Cs of opportunity in life insurance are – communication, customization, connection, cognition and consensus.
Collaborating with Insurers
Insurance is a heavily regulated industry and insider knowledge is a pre-requisite for success. This makes it hard for entrepreneurs from outside the industry to enhance the capabilities of the industry. The smart bet is to partner with an insurer. It is a good idea to connect with the innovation lab – usually the easiest way into the organization.
Insurance is a large and exciting space. It can be a great vehicle for growth if you have a use case that fits one or more of the Cs.