The insurance industry has been the laggard of the fintech revolution. But it’s not too surprising, since the very premise of insurance is minimizing risk for all involved parties. The ability for insurance companies to innovate or enter new markets is further hindered by responsible government regulations that mandate insurance companies keep a minimum amount of capital to be able to pay out large claims at any given time.
Insurance is supposed to be boring. That’s the point.
Imagine if a group of teenagers were challenging each other to risky dares but responsibly stated, “before I jump off this cliff into the ocean, let me quickly make sure my life insurance policy is buttoned down.” The dare would be ruined. Insurance keeps up safe.
And yet, as we pointed out in Part 1 and Part 2 of this series on Fintech revolution, technological change in finance and insurance is simply inevitable. And 2016 will be the year insurance tech goes mainstream.
Disruptors
In 2015, insurance technology startups raised a combined $2.65 billion in funding. One of the standouts from this group includes Oscar, a truly impressive all-digital health insurance tech company that allows users to be boarded in minutes, search for doctors based on expertise and cost, and even be financially rewarded for walking and running more than usual (the app tracks your step count).
With a current valuation of approximately $3 billion and over 125,000 customers in just over 2 years, Oscar is aggressively ramping up to become a bona fide disruptor in the health insurance industry.
How exactly are they doing this? By making it really easy to sign up for, and use, health insurance.
[agreementexpress.com]
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Why Insurance is the next industry to be disrupted, and what traditional insurance companies can do to keep up.
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