Innovation, Lessons, Overview, Trends
Gilad Shai
Bryan Falchuk - The Future of Insurance
Entrepreneurship, Innovation, Insights, Startup
Gilad Shai
Nick Lamparelli - InsurTech Talk

Nick Lamparelli joined Gilad and the InsurTechLA community for an unscripted InsurTechTalk. In this broadcasted event, Nick was in the interviewee's seat. We had the opportunity to learn about Nick’s day job and dive into flood insurance and how to build insurance programs.

Nick Lamparelli - InsurTech Talk
Alex Devoto
Scream

The 1996 movie ‘Scream’ taught us one thing: Don’t answer the phone! And much like the characters of that movie, so to insurers should heed this advice when engaging with Millennials.

Scream
Entrepreneurship, Startup
Gilad Shai
Startup Life

A startup has a life but the people who breathe life into it…, well, they usually don't.

People like the idea of a startup. It is romantic. The excitement diminishes when they find out the extent of their responsibility and compensation. Basically, most people really want to work for Google. Google is a multibillion-dollar behemoth that has all the risk management tools and processes to support it. And yes! They still have all the perks and cool parties at the end of Google I/O.

Innovation, Overview, Startup, Trends
Gilad Shai
Innovation as a step function

Step Up

The entrance of startups to the insurance industry, nearly four years ago (2015), introduced a change, innovation, that made all the components, whether they are linear or passive, to react. The new teen spirit that the startup introduced acted as a step function that increased the value of the industry. The input may be a nice and clean function. It has a ripple effect that affects the entire pond until is converges on the new and higher level.

Innovation as a step function

Target

Should Amazon sell insurance

This post is a reply to https://www.linkedin.com/nhome/updates?activity=6228120175070179328

Google discontinued its Google Compare service after a year. The decision, like most decisions at Google, was based on performance. According to public reports, Google enjoyed only 10% of the expected traffic in the four pilot states. Missing a goal by 90% seems a good reason to stop the service.

The launch announcement of Google Compare in 2015 alarmed many insurance agents. The shutdown, on the other hand, was noticed only by those who followed the technology news. Google is an amazing tech company. Many of my Googler friends define Google as "geeks heaven." I can only speculate to the true reason Google Compare failed.

For starters, let me remind you that Google's core business is selling ads and that Google search drives that traffic. Google's critics would like Google to improve on: user experience, customer service and promoting Google non-search products. The first two items are critical for insurance and financial services. Google has services, and can develop new B2B services for the insurance industry. e.g. tools for commercial lines underwriters.

Google Venture is investing in new InsurTech companies. e.g. Oscar and Lemonade, and partnering with insurance companies. e.g. Liberty Mutual and AXA. However, instead of building its own capability, Google is partnering up. It will be interesting to see Google, or another tech giant, acquiring a conservative insurance company and integrating it to Google's culture.

Amazon is a different story. When you think about Amazon what comes to mind? Superb supply chain management, distribution, AWS, Alexa, recommendation engine and the other Netflix, which is not Hulu. Amazon already exhibited its ability to penetrate a new industry. For example, today Amazon is a content creator that hires movie producers. Amazon has the ability to provide value also to the insurance industry. I argue that, if Amazon penetrates the insurance market,  it should not compete over personal lines as an insurance company. It should not act as a broker. It should offer infrastructure services (AWS). For example, power up insurance customer facing applications with AI and ML as a Service. The other thing that Amazon can do is to introduce its own insurance product - insurance for items. Amazon controls "points of payment," distribution, a drone fleet (future) and recommendation engines. It can be a valuable player in personal risk assessment and after catastrophe.

I will take this conversation one step further and argue that Target should also enter the insurance space. Target is known for its customer behavior patterns and prediction models. Insurance companies have a lot of data, however, they struggle to take an action because of various reasons. While the insurance companies build their personalization middleware and big data lakes, Target can offer them "Life Change Indicators System."