Elephants are strong, wise, and noble. In some cultures they also are a source of good fortune. However, they generally are not flexible, lithe, or quick.
My Insuretech Connect experience last week reinforces a central Celent hypothesis about insurtech: that its most significant value lies in enabling insurers to become faster, cheaper, and better able to serve their customers. In other words, to teach elephants to dance.
The Progressive Corp. headquarters is seen in Mayfield Village, Ohio on Wednesday, January 18, 2006.
John Quinn/Bloomberg News
A new agreement between Progressive Insurance and Slice Labs is an example of marrying insurer power and startup innovation. Later this month, Progressive Homeshare by Slice Labs will launch. Progressive prospects will use the Slice homesharing platform to apply for coverage and obtain policies. The combination of Progressive’s marketing might and the unique Slice product will be interesting to track and may represent a new model for insurtech startups and insurers to partner. (For more on insurtech partnerships, see the Celent report Insurer-Startup Partnerships: How to Maximize Insurtech Investments).
The market will have the ultimate say in the outcome. Meanwhile, strike up the band and let the dancing begin!
While the 22% average increase for homeowners insurance is provisionally approved by California's regulator, the carrier will have to get capital from its parent company to help cover its risks.
Estimates for the financial toll of the blazes range from $30 billion to as high as $250 billion, as homeowners grapple with premium hikes and non-renewals.
