How Is InsurTech Impacting the Insurance Industry? (Update)

Insurtech, loosely defined as an industry that combines technology with insurance, has rapidly grown since its leapfrog inception in 2015. With approximately 1500 Insurtech startups, the global Insurtech market size is estimated at $5.45 in 2022 and is expected to grow at a compound annual growth rate of 52.7% from 2023 to 2030. Companies like Lemonade (LMND) and Root (homeowners and auto insurance, respectively) created a phenomenon in the insurance industry not seen in hundreds of years making an impact on the legacy insurance market which can hardly be understated. Yet, according to a 2023 Deloitte study, almost half (44%) of responding insurance have not cooperated with Insurtech companies in the prior three years, with 3 out of 4 citing a "lack of resources" or "insufficient funds" rather than a lack of interest.

This lecture, presented by Lemonade Insurance Company Founding Member, Co-Founder of Insurtech Assurely, and 40-year insurance veteran Ty Sagalow, explores how Insurtech is changing the concept of insurance. The session will focus on the key attributes of Insurtech, its various forms and business models, and how those models might be used or incorporated by legacy insurance carriers. The lecture will also explore how current players like Lemonade might threaten current insurance players and options to buy/build/partner with Insurtech companies in the future.

Learning Objectives:

1. Define Insurtech

2. Explore the scope of the Insurtech industry

3. Examine the problems that were inherent in the traditional insurance market and how  Insurtech is trying to help solve them

4. Identify what distinguishes companies like Lemonade and Root from others

5. Discuss what the future of insurance looks like in a post-Insurtech world