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BizReport : Internet Marketing 101 : August 07, 2020

Leading a Revolution: Five Types of Innovative Insurance Companies

The insurance sector is a highly competitive financial services industry that's not traditionally known for innovation. Transformation in the sector has been slow, however, changes in consumer expectations, business models and technology trends are creating new opportunities for InsurTech firms in the U.S and beyond.

by BizReport

Traditional insurers are at risk of losing a share of the $5 trillion global insurance market to new entrants because they've been slower to adapt to a new generation of consumers, compared to their counterparts in other industries within the insurance sector.

Insurance companies have been struggling to modernize without sacrificing the old systems and approaches they're used to. The need to innovate through new technology is critically important for traditional insurers. But insurance technology is here to stay.

InsurTech refers to the new technologies and digital tools developed to bring innovation and game-changing solutions to the insurance sector. InsurTech startups are leveraging technology to deliver high-quality and intuitive digital experiences, optimize the performance and efficiency of insurance companies, and accelerate the transformation of the insurance sector.

While some Insurtech startups are collaborating with traditional insurers to help them deliver better end products for consumers, others are aiming at directly competing with insurance providers. There's no better time to consider how Insurtech can impact your business than today. With that in mind, here are five innovative insurance companies that are leading the revolution in the sector and already finding great success.

Lemonade (Homeowners and Renters Insurance)
Lemonade is an innovative insurance startup making insurance coverage accessible and affordable to homeowners and renters in the U.S. Founded in 2015, the peer-to-peer insurance provider leverages a unique combination of artificial intelligence and data analytics to determine their clients' precise risk factors and premiums. The company's business model applies behavioral economics to discourage fraud.

There's no doubt the insurance company is disrupting the centuries-old insurance industry as it has replaced brokers and bureaucracy with machine learning and bots. A chatbot named "A.I Jim" processes applications made by new prospects, handles claims, and approves or rejects the payment. The insurance carrier can process claims and pay its clients in as little as three minutes. They're a great choice for homeowners and renters looking to save money.

Figo (Pet Insurance)
Pet insurance can be very confusing. Pet owners don't seem to understand what it covers and how it works. InsurTech startup Figo Pet makes it easier by providing pet owners with clear insurance coverage options and new technology.

The Chicago-based pet insurance carrier utilizes a mobile-friendly Pet Cloud app that allows clients 24-hour access to a live vet in case of emergency. Clients can also use the app to locate pet-friendly places and socially engage with other pet parents in their area. They can submit claims right from the app with the help of an AI chat assistant named "Evie."

Olive (Car Insurance)
The auto industry is changing. Olive insurance solutions are redefining vehicle mechanical breakdown coverage with its online insurance platform, designed to be a modern answer to the antiquated auto solutions offered. Olive provides customers with a fully online quoting and fulfillment platform with no waiting periods. Customers benefit from fixed monthly subscription pricing, nixing the middleman markups associated with comparable auto insurance solutions.

World Nomads (Travel Insurance)
World Nomads is another winner in the technology-based insurance world. Founded in 2002, the insurance provider offers simple and flexible travel insurance for independent travelers to cover their trip essentials. World Nomads leverages innovative technology and new digital tools to allow travelers to buy travel insurance cover from anywhere in the world, while they are on a trip. By keeping things simple, being available 24/7, and staying flexible, they are a great example of what it takes to put the customer first.

You can also file a claim for reimbursement or buy more covers to extend your coverage online through your account dashboard. They cover travelers from over 150 countries, providing them with extensive coverage for everything related to overseas traveling from loss of valuables and trip cancellations to emergency evacuation.

Founder Shield (Umbrella Insurance)
Buying insurance has historically been a complicated and tedious process for startups. Founder Shield utilizes innovative technology to reduce the inefficiencies in the process of buying insurance while offering fully customized insurance packages to their customers. The InsurTech firm was founded in 2012 and provides business insurance packages for startup companies. Their platform takes away the role insurance brokers play in the traditional insurance value chain. Founder Shield's value proposition is to make it easier and more convenient for startup companies, founders and investors to get insured.


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