The 7 deadliest mistakes insurance companies make today that might jeopardize their profitability (and even take them out of business) on the next 5-10 years

Dec. 27, 2017

Introduction

Insurance has remained a dormant area for quite some time. Almost every other industry has become deeply transformed by technology during the last 10-20 years. In all these areas, we have seen major disruption. Lots of innovation coming from small start-ups without too many people or too much money

Most of them have failed miserably, to innovate and to market themselves. They executed poorly. But some of them made it.

Some of them "disrupted" the way we did business in that industry, the products, the offers, the marketing. And now those industries, are not what they used to be anymore...

Because the changes have been so profound...nothing remained the same.

Right now, we're seeing a major transformation in finance. With the raising of Fintech with companies like Transferwise and Monzo in the UK. Bank APIs are becoming ubiquitous and everyone can access bank information easily and fast.

We have even seen the rise of decentralized currencies. They even have their very own "Market Exchange" where they are being traded daily. Basically, a FOREX for digital currencies.

That hasn't happened to insurance...yet.

The Trend

But now, entrepreneurs from every breed have turned their eyes into this untapped industry. Into this virgin terrain. And boy, are we going to see a change in insurance...

We can see it already in the US. There are early indicators of this. Just look at Lemonade. They are getting flooded with waves of new customers.

Or Cover, which was dismissed because they were insuring everyday objects. Now, the guys from Cover are turning their eyes into bigger and better stakes. And since their customer base are happy with them...guess who is going to lose big time?

These are just a couple of examples. What is important to take away is what they are doing is to set the new standards of how clients are treated and want to be treated, what they get out of their money, and how their money is going to be spent.

With this trend and so many new startups getting funded and rushing in the scene, these industry transformations are going to happen. And they already started somehow.

Here is a list of the 7 potential errors well and long established insurance companies are doing today.

The meat

In Closing

While we don't know certainly what is going to happen and which startups are going to make it, and which not. Which insurance companies are going to remain and which ones are going to go for the better, we certainly know this change has already started and it's going to stay.

And just as a reminder, there was a time we all searched with Altavista. And when Google came out with their PageRank algorithm people dismissed them because Search was already "figured out". But time has demonstrated there is always some room for improvement. In the case of Google, for a big improvement. What do you think of insurance?


Kippie helps big insurers perform their critical mission. We act as a technology support and we help to optimize their customer relationships and customer journey, to reduce operational cost, to get more engagement, to improve their customer profiles and do relevant upsells.

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