The Covid-19 virus (Coronavirus) has spread worldwide, and all organizations should be assessing their exposure, specific challenges, and planning steps they can take. The Covid-19 virus may be a survival threat for startup and early stage companies, including Insurtechs, trying to get traction or ramp up sales. The ability to raise capital at a favorable valuations, or at any valuation, may be significantly impacted.
Pitch decks are important for raising capital, and a good pitch deck can get key investors interested, maybe even committed. Explaining your Insurtech company and strategy, along with the investment structure, in a clear, concise and compelling manner can make the difference.
Venture capital funds, angel investors and startups should be cognizant of cyber crime exposures and the preventive steps available. Most of capital raise transactions involve wire transfers, prime targets for cyber criminals.
Technology is bringing change to the insurance industry and regulation may not keeping up with the pace of technology change. But insurance regulations have been developed over many years for a reason. Insurtechs should work within the current regulatory structure and with regulators, and keep in mind the regulators’ primary objective of protecting insurance buyers.
Insurtech strategies can be divided into disrupting and enabling technologies. “Disruptors” are working outside of the traditional insurance ecosystem to dramatically change traditional insurance. “Enablers” are partnering with existing insurers and other insurance organizations to bring more incremental, efficient and effective technology-based change.
Insurance innovation is beginning to move fast. Insurtech investing in the fourth quarter of 2019 increased again and deal size increased as well. Not only is there the opportunity to participate in insurance innovation, it is now becoming an imperative for all insurance organizations.
The majority of this post was originally post on the Specialty Insurance Blog and is included below with updates. AI (“artificial intelligence”) is a hot topic for many service businesses, and it is beginning to impact the insurance industry. How is it being used? What will the impact be? And how will it impact specialty … Continue reading AI & Insurance