Technology is enabling profitability in insurance. Not only by improving efficiencies but by also focussing on customer interaction from Point of Sale through to Claims.
The question is if this technology is so successful why has not the whole industry drunk the Kool-Aid and benefitted from this first wave?
New entrants such as Lemonade have no IT Legacy. Large insurers have traditional models of silos across all lines of business (each being "unique"!), and silos of function.
It will take a strong CEO to implement this broad brush approach. However, utilising business partners who understand technology and insurance can assist them either with tentative steps or substantive strides.
Who will lead from the traditional players and drink from the well of Insurtech?
Lemonade is doing a lot of things that differ from the norm, from including using artificially intelligent and empathetic bots helping customers, to applying the study of behavioural science to positively influence their customer experience, and encourage a continuous process of improvement. This New Entrant is also socially conscious, and devotes a portion of their relatively small fees to a cause of your choice. Simply put, they’re trying to make insurance easy, and something to feel good about. And it’s working.