Yet another VC backed InsurTech goes live with the vision of offering insurance products that reflect the increasingly demands from Joe Public for tech-enabled services, that adapt to their needs and where the costs are increasingly consumption based.
Whether or not Hippo will be the one to revolutionise the Insurance market is neither here nor there. The importance of this latest launch is that it demonstrates the sustained investment and innovation in this industry and indicates that it is likely to continue.
For heritage players in the market, the need for fundamental change to product, service and operations is rapidly becoming less of an elephant, or Hippo, in the room. Now the topic of avoidance is which technology to make big bets on, which parts of the business to disrupt first and how to execute quickly enough to avoid insurtech's with their inherent nimbleness and millions of dollars of investment capital eating up their market share.
As someone who is working within the industry to develop technology enabled solutions this is an exciting time, but also a very challenging time. It is today's technology landscape and the integration of technology with day-to-day life that creates an exciting potential for new, flexible and intelligent insurance services. However, for a number of the traditional insurance organisations it is going to be a challenge to identify and execute the bold moves necessary, both financially and operationally, to continue to retain market share and compete against some of the silicon valley and silicon roundabout disruptive forces... without de-stabilising their current books of business and customer relationships.
Change is inevitable, change is required, and executed correctly change can benefit both the insurance industry and the insured. No doubt there will be many more new arrivals like Hippo, Lemonade, Jetty as part of this change journey; but my hope and expectation is that these new entrants will also continue to push some of the more recognised and established players in the market adapting and evolving to become next generation or digital insurers.
Offering a more complete home insurance package for less money than traditional insurance sellers, startup insurance broker Hippo Insurance launched its first service this week in California. Venture capitalists and entrepreneurs alike are drawn to the insurance industry for its trillion-dollar size, entrenched incumbents operating with business practices that haven’t changed in decades, and terrible customer reputation. Indeed, companies like Lemonade, Jetty and Quilt have all launched (and raised tens of millions of dollars) to “fix” the insurance industry.