3 Ways the Insurance Industry Must Change to Survive

There’s a lot of talk in the insurance industry about the next big thing: big data, artificial intelligence (AI) and predictive analytics to name a few. But one topic escapes most commentators’ attention—the business model of the insurance industry. Put simply, it needs to change.

Yes, you read that right: The way the insurance industry makes money, profitable as it may be, must be altered to better serve consumers. Far from wishful thinking, this is absolutely necessary if the industry is to survive a coming onslaught from innovative companies trying to disrupt insurance. Upstarts are rethinking the insurance game from the ground up, and the industry needs to follow suit.

Here are the top three places they should start.

1. Transform the User Experience

The first change most insurers must make is to improve the user experience. Don’t think user experience is part of your business model? Think again. Upstart companies are eating the industry’s lunch, precisely because they provide a dead simple interface across devices that make it easy to learn about, compare and buy insurance.

And it doesn’t stop there. Once insurance is purchased, the experience must remain exceptional. Policyholders want (and should be able) to manage their insurance from all providers with ease, across any device and in any place. Claims and customer service need to be Zappos-worthy. And consumer peace of mind must be the top priority of every user interaction.

Insurance knows how to make money. What it’s struggling to do is delight and retain clients, even though consumers have few other options right now in the market. That will change as new companies reinvent insurance. Insurers have an advantage thanks to their infrastructure and clout, but they need to master the user experience if they want to future-proof their businesses.

2. Become Consumer Champions Again

The insurance user experience has suffered for many reasons, but primarily due to industry leaders having completely lost sight of their original reason for existing—to be consumer champions. Before the modern era, insurance providers and customers were far better aligned because the stakes were so high. For instance, a ship voyage was almost certain to encounter hardship—and everyone knew it. The parties involved created terms that were favorable to all, sealed with trust and a handshake.

Today, things have changed. The mutual gain aspect of insurance is largely gone.

The process is bogged down in legalese, exceptions and jargon that consumers don’t understand. And it’s never been harder to buy with confidence and a clear view of what your premiums are paying for.

In the past, insurance enabled risky ventures by providing reassurance and protection. These ventures were able to create massive gains for individuals and nations because of it. Today, few consumers look at insurance as an extremely valuable tool that works in their interests.

That needs to change. Without being true consumer champions, insurers will never recapture the trust and goodwill they’ve lost with many in the market.

3. Give Money Back

Lemonade, a disruptive insurance startup with millions in funding, has identified a major roadblock in the traditional insurance business model: claims. Company cofounder, Shai Wininger, explains in this Medium post, “If we could figure out how to take away the underlying incentives that drive insurance companies to behave the way they do, we’d have a shot at profoundly changing how insurance works.”

Part of that behavior is the tedious and lengthy claims process, which Lemonade says, some insurance players are incentivized to drag out, since they make more money when claims are not fulfilled.

To address the issue, “we only take a 20% flat fee off the top,” Wininger says. “This way, regardless of the amount we pay out in claims, we end up with the same bottom line. This changes everything. Now, there’s no more pressure to hold back on payments, and no incentives that work against our customers.”

The result? Lemonade hopes to settle claims in seconds where possible, in a way that does right by consumers. The merits of Lemonade’s model will be tested in the market, but there’s a larger point here: industry giants need to begin thinking like startups. They must be brave enough to reinvent their business models in the ways detailed above.

If they don’t, someone else will. And by the looks of it, it won’t be an industry veteran.


Author: Jason Williams

Share This Post On
ATM Africa


  1. Qsymia No Prescription Online viagra Comment Acheter Cialis Internet

  2. Levitra Prix Au Maroc cialis American Pharmacy Coupons

  3. Viagra Contraindicaciones Precio cialis How To Last Longer

  4. Organic Alternative To Propecia cialis Propecia Espana Se

  5. Viagra Arztrezept viagra Kamagra 100 Mg Nimes

  6. Cialis Legal Deutschland viagra Buy now isotretinoin

  7. Hey! Do you use Twitter? I’d like to follow you if that would be
    okay. I’m undoubtedly enjoying your blog and look forward to new updates.

  8. I am genuinely pleased to read this webpage posts which carries tons of useful information, thanks for
    providing these kinds of data.

  9. Immunity To Amoxicillin cialis Prix Du Viagra 50mg

  10. Viagra E Tachicardia cialis Viagra Prix Paris En Charleville

  11. I visited multiple websites but the audio feature for audio songs existing at this website is actually marvelous.

  12. I do not even know the way I finished up right
    here, but I thought this post used to be great.
    I do not realize who you might be but certainly you’re going to a famous blogger if you happen to aren’t
    already. Cheers!

  13. Hi there all, here every one is sharing these
    know-how, thus it’s pleasant to read this website, and
    I used to go to see this webpage everyday.

  14. continuously i used to read smaller articles or reviews that also clear their motive,
    and that is also happening with this piece of writing which I am reading at this place.

  15. I don’t even know how I ended up here, but I thought this post was great.
    I don’t know who you are but certainly you’re going to a famous blogger if you
    aren’t already 😉 Cheers!

  16. What’s up, I check your blogs like every week.
    Your humoristic style is witty, keep up the good work!

  17. Can I simply just say what a relief to uncover somebody that actually
    knows what they are talking about on the web. You actually realize
    how to bring an issue to light and make it important.
    More and more people have to look at this and understand this side of the story.

    I can’t believe you aren’t more popular since you definitely possess the gift.

  18. Does your site have a contact page? I’m having trouble locating it but, I’d like to send you an email.
    I’ve got some creative ideas for your blog you might be interested in hearing.
    Either way, great site and I look forward to seeing it improve over

  19. I like what you guys tend to be up too. Such clever work and reporting!
    Keep up the wonderful works guys I’ve incorporated
    you guys to my own blogroll.

  20. It’s amazing designed for me to have a website, which is valuable in support of my experience.
    thanks admin

  21. Piece of writing writing is also a fun, if you be
    acquainted with afterward you can write or else it is complex to

  22. Somebody essentially help to make seriously articles
    I would state. That is the very first time I frequented your website
    page and so far? I amazed with the research you made to create this actual publish incredible.
    Fantastic job!

  23. You really make it appear really easy together with
    your presentation however I to find this topic to be really one thing which I think I
    might by no means understand. It sort of feels too complex and
    very large for me. I am looking ahead to your subsequent post, I’ll try to
    get the hang of it!

  24. Hello to every body, it’s my first visit of this webpage; this web site carries
    awesome and actually fine material in favor of visitors.

  25. Hi there, I want to subscribe for this webpage to obtain hottest updates, therefore where can i
    do it please assist.

  26. If some one wishes expert view regarding blogging and site-building afterward i recommend
    him/her to visit this webpage, Keep up the fastidious work.

  27. Good day! Would you mind if I share your blog with my twitter group?
    There’s a lot of folks that I think would really appreciate your content.
    Please let me know. Many thanks

  28. I really like what you guys are usually up
    too. Such clever work and exposure! Keep up the excellent works guys I’ve included you guys to my personal blogroll.

  29. Good day very cool site!! Man .. Beautiful .. Wonderful
    .. I will bookmark your website and take the feeds additionally?
    I am glad to find so many useful info here within the submit, we’d like work out more techniques in this regard,
    thanks for sharing. . . . . .

  30. Very great post. I simply stumbled upon your weblog and wanted to mention that
    I’ve really loved surfing around your blog posts.
    After all I will be subscribing on your feed and I am hoping
    you write again soon!

  31. This website was… how do you say it? Relevant!! Finally I have found something which helped me.

    Thanks a lot!

  32. Woah! I’m really enjoying the template/theme of this site.
    It’s simple, yet effective. A lot of times it’s challenging to get that “perfect balance” between superb usability and appearance.
    I must say that you’ve done a excellent job with this. Additionally, the blog
    loads extremely fast for me on Firefox. Superb Blog!

  33. Interesting blog! Is your theme custom made or did you download it from somewhere?
    A design like yours with a few simple adjustements would really make my blog jump
    out. Please let me know where you got your theme. Thanks a lot

  34. No matter if some one searches for his necessary thing,
    thus he/she desires to be available that
    in detail, therefore that thing is maintained over here.

  35. Good day! This is kind of off topic but I need some guidance from an established blog.
    Is it very difficult to set up your own blog?

    I’m not very techincal but I can figure things out pretty quick.

    I’m thinking about making my own but I’m not sure where to start.
    Do you have any ideas or suggestions? Thank you

  36. Your method of explaining all in this paragraph is actually pleasant, every one
    be capable of simply understand it, Thanks a lot.

Submit a Comment

Your email address will not be published.