With so many new insurtech startups hitting the landscape, it's starting to feel like we're in the race to the bottom of value.
The press releases are all the same, "We're going to 'disrupt' this tired, old, antiquated insurance industry using a slick website design and a somewhat AI-driven bot with a cheeky name and all the insurance industry's problems will be solved."
Why do new market entrants believe removing human beings from the customer experience is what insurance consumers want?
They're mistaking cheap, fast and easy for value.
It's easy to throw stones at traditional insurance providers when you don't list a phone number on your website and turn off your online reviews.
These "disruptors" have never had to fight for their clients when a claim is denied.
They've never experienced a family living through a total loss. They hide behind computers instead of stepping out front to deal with the ugliness that is the insurance industry.
Insurance isn't a SAAS product.
Traditional insurance providers put people's lives back together when no one else will. Those who forget this will pay a dire price in the long game.
Do you really want to win the race to the bottom of value?
My recommendation to insurance carrier executives: Don't believe the hype.
Double down on the humans that make your business unique and valuable. I will add one caveat, learn from the "Disruptors." Start applying their technology in ways that bring insurance consumers closer to the independent agents that serve as your sales force.
Yes, not all independent agents will adapt.
That's OK. The time for a culling of the independent agent herd has been long overdue.
Spend the time to learn who your prime time players are, the agents and agencies that are willing to evolve. There are more than you might think.
The future isn't humans building connections with robots, it's robots supporting a deeper human connection.
I'm OK losing the race the bottom because right now, there is a lot of room at the top. Oh, and agents, time to step your game up. If you want carrier support, you need to show you're worth supporting.