“An untapped and unlimited market opportunity in insurance”.That’s how Dan Schreiber of Lemonade describes insurance.
I’ve NEVER heard an incumbent say anything similar.
For years I’ve been presenting to, and working with, the boards of insurance companies around the world. We talk about the changing business landscape, the role new technology and customer propositions play, and how incumbents are struggling to innovate.
All too often, it’s not the innovation that’s the missing ingredient; it’s the lack of ambition. Without the latter, you’ll never have the former.
When thinking about the future of insurance, there’s one quote that beautifully sums it up:
I was with BAE Systems this week and had a chance to chat through one of my favourites from this year’s Disrupt 100 – Relativity Space. Founded in 2015 by a couple of guys in their 20s, they are planning on sending 3D printed rockets into space by 2020.
Step 1: build the largest 3D metal printer in the world (because there wasn’t one big enough for what they needed) Step 2: make your own metal Step 3: print rockets and sell them for $10M each
Just brilliant. In fact, I’m not nearly doing them justice. Watch this, it’s great.
Why am I telling you about these rocket makers? Namely because there’s a world of talented, ambitious folk who are dreaming big and then doing whatever they need to make those dreams come true.
Dan Schreiber is just one of these. Having launched Lemonade just 2 years ago and raised close to $200 million, he modestly states “our ambition is expansive”.
And if you think Lemonade is one of those US businesses you don’t need to worry about, think again. They’re rolling out globally later this year.
2018, the year of the PoCs (that don’t quite live up to their hype)
Watching the convergence, and occasional collision, between Insurtechs and established players has been an interesting one. 2018 has been much talked about as the year where these two worlds came together.
On one side are the startups struggling to scale and in desperate need of distribution. The other, corporates failing to innovate whilst sitting on a pile of cash and customer data. Bring the two together and you open up a world of opportunity.
There’s load of reading material about how to launch and run a successful PoC so I won’t go into that. If you can’t find it, drop me a note and I’ll happily talk you through our approach.
But there’s also a step before a PoC which I believe most companies are yet to tackle. And it’s a really important one – selecting the right partners.
A little whille ago we published this:
Whilst I still love the word play there’s a deeper issue about the ‘noise’ in Insurtech. There are thousands of Insurtechs globally and, yet, if I asked you to list the ones you know, it’d be a dozen or so of the usual suspects.
There’s nothing wrong with that, I’d just be cautious about getting into bed with any of them before scanning the market opportunity in insurance for others and giving due consideration as to whether they’re a better fit.
Think connected home and Neos springs to mind. But what about the French company Luko and their ambition to enter new markets? Or concierge services? You’ve got Brolly who have stolen every headline under the sun. But what about Sherpa or Coverfy? Or, when exploring microinsurance how do you select between Wrisk, Sure and Toffee. And so on. You get the point I’m sure.
The good news is we can help. Not only do we have the world’s most comprehensive market opportunity in insurance scanning platform in Sønr, but we also run Partnership Days for our clients. They’re a brilliant way to engage your internal teams, connect with a dozen or so carefully selected startups, and explore near and far-term opportunities together.
I mentioned Windward a few weeks back after they secured a $16.5 million funding round led by XL Catlin. This week we caught up with Ami Daniel, the co-founder & CEO, to hear more about their journey and ambitions.