How to operate in a highly uncertain environment and what you can use in your own advantage to navigate to a bigger market share

Dec. 27, 2017

Very simple. You have more mobility – meaning you can operate with fewer margins and lower prices. Start-ups cannot.

You can always compete (facing the public) in three categories:

  1. Price (based on perception)
  2. Customer satisfaction
  3. Superior technology/marketing (or both)

You could blow most of the new competition away in any of them – and all them altogether. How is it that they survive and make it?

But the question would better be – what do new insurers have that old insurers don’t, and how can big insurers play somehow at the same level?

The battle against perception – why new always wins and old always loses.

But the trend might be favoring them…

Looking at the graphs, it seems pretty clear that 1) there is a flow problem, and 2) there is a perception problem.

Established insurers are regarded as the old, new insurers like the new promise “battling the old” to bring a better “future” to the users.


But this narrative, in a more formal way, is what most of the people have in their heads. Big insurers are “evil”.

These narratives are stupid but they are based on a human cognitive bias. That’s why so many people do it.

So, what can you do? A flow problem – where money is and where should it go. You have more money at command than any startup has, they have the expertise in technology you lack.

As I explained in this post one of the biggest errors is not to partner faster with startups in the InsurTech sector. And it also makes sense, because you bring to the table industry expertise - which in this sector, is really difficult and hard.

And they bring to the table technology expertise and also a new viewpoint. Especially if they come from the consumer side of technology, they know the one who delights the user wins, everyone else loses.

And that to me, seems a match made in heaven.

Stay tuned for more technical posts with more in-depth industry analysis


Sam Evans, Founder of Eos Venture Partners, Innovation Blog: The peak of inflated expectations?

Alex Harari, Business Consultant at Charles Taylor, Insurtech partnerships are key to profitability in the insurance industry

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