Why technology has failed to disrupt insurance
Billions invested. Hundreds of start-ups. Plenty of hype. The idea that the centuries-old insurance industry is ripe for disruption by new technology has been pulling in investors and entrepreneurs for years.
It’s easy to see why they have been casting envious glances towards insurance — it is big, can generate decent profits, and has been doing business in broadly the same way for decades. By sprinkling in some AI, some big data and some user-friendly apps, went the argument, it should be possible to win a decent slice of the market.
Plenty of people bought into the idea. According to data from insurer Gallagher Re, more than $40bn has been invested in so-called insurtech start-ups globally over the past five years.
This story originally appeared on: Financial Times - Author:Oliver Ralph
