Paradigm Shifts: Innovation from Adversity

The property/casualty insurance industry will endure Covid-19 pandemic challenges in the near term, but some of the changes will stay with us in the form of paradigm shifts. These paradigm shifts will drive innovation in insurance and create opportunities for Insurtech organizations.

Paradigm Shifts & Insurance

The pandemic has changed our lives and our businesses. Some of those changes will be permanent paradigm shifts, and some of these paradigm shifts will be opportunities for innovation. Much of the shift to online that has been imposed by the pandemic will remain, and the online shift will accelerate in insurance after this difficult period is past. The most significant paradigm shifts in insurance will likely be technology driven and may begin to create a digital divide, creating winners and losers.

PPP Loans for VC-Backed Companies

VC-backed companies are eligible for the PPP loans subject to guidelines, which include affiliation rules regarding venture ownership and negative covenants. Link to a summary of applicability.

Seed Stage Funding Disruption from Covid-19

One outcome of the Covid-19 pandemic could be a significantly more difficult capital raising environment which could threaten startups and early stage companies.

Covid-19 & Planning – Part A

The original article has been split into the Covid-19 virus (Coronavirus) information, which has changed from a week ago, and The Case for Contingency Planning. This article retains the original information on Covid-19.

Covid-19: The Case for Contingency Planning

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 Deck Recommendations

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 Investing, Cyber Crime & Wire Transfer Fraud

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.

Insurtech & Insurance Regulation

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.

Enabling & Disrupting Technologies in Insurance

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.