How is InsurTech Impacting the Insurance Industry?

Insurtech, loosely defined as an industry that combines technology with insurance, has rapidly grown since its leapfrog inception in 2015.  By the end of Q3 2019, investments in Insurtech companies have exceeded $4 billion, already surpassing 2018's full-year total. With startups like Lemonade and Root (homeowners and auto insurance, respectively), the impact of these investments on the legacy insurance market can hardly be understated. According to a recent PWC study, 74% of respondents see FinTech (Financial Technical Services) as a challenge to the existence of their industry, yet only 14% are actively participating in ventures and/or incubator programs.

This lecture, presented by Lemonade Founding Member and 37-year insurance veteran Ty Sagalow, explores how Insurtech is changing the concept of insurance. The session will focus on the key attributes of Insurtech, its various forms and business models, and how those models might be used or incorporated by legacy insurance carriers. The lecture will also explore how current players like Lemonade might threaten current insurance players and options to buy/build/partner with Insurtech companies in the future.

Learning Objectives:

1. Define Insurtech

2. Explore the scope of the Insurtech industry

3. Examine the problems that were inherent in the traditional insurance market and how  Insurtech is trying to help solve them

4. Identify what distinguishes companies like Lemonade and Root from others

5. Discuss what the future of insurance looks like in a post Insurtech world