I recently had the opportunity to lead the latest meeting of the Innovation Advisory Board, in which insurance technology leaders and prominent Silicon Valley insuretechs came together for a lively knowledge-sharing discussion. We heard from a selection of startups tackling complex problems in the industry; their perspectives illuminated the evolving symbiosis between insuretechs and insurers.
Collaboration at the Right Place, Right Time
Collaboration and co-location are the bedrock of Silicon Valley’s innovation fabric. One of the Valley’s most notable examples is Plug and Plug Accelerator. Now known as one of the leading incubators in the world with over 45K startups in its ecosystem, the organization had much humbler origins. Plug and Play began as a Persian rug store whose owner rented the shop to young startups needing co-working space. The store would eventually become home to many tech giants in their infancy, including household names like Google and PayPal.
The rug store evolved into Plug and Play, whose presence now covers every continent and multiple verticals. Certainly, timing helped. Yet, the focus on partnership and collaboration has also allowed Plug and Play and companies like it to shape an innovation ecosystem that continuously enriches itself. Keeping close to the startup deal flow allows companies like Plug and Play to skate ahead of the puck and ultimately take more shots on goal. By staying connected to the innovation ecosystem, being “in the right place at the right time” became much more than just a real estate adage.
The Evolution of Insuretechs
In the early days of insuretech, startups often came from technology backgrounds and positioned themselves as direct competitors to incumbents. Recent startups appear to appreciate how challenging insurance is and are solving problems related to more complex workflows and lines of business. As Tyler Lange of Plug and Play said, “Lean startup methodology won’t fix everything.” Tyler also noted a general change in sentiment towards the insurance industry, with startups increasingly focused on helping partners and enabling incumbents.
Complex Process Automation
Insurance is a complex business, a fact of life that insuretech startups have come to embrace. Over the past few years, many startups have tackled more complex lines of business. Many are now bringing automation expertise to back-office workflows.
This meeting featured presentations from startups combining technologies like RPA and AI to address the complex manual workflows inherent in insurance processes like claims processing and enrollment. The more recent wave of startups has embraced insurers as partners rather than competitors, with many startups looking to provide the tooling and technology to create greater efficiency. AirKit, for example, automates customer experience. We also heard from Automation Hero, a startup that focuses on process mining and automation.>
The pandemic has certainly changed how we approach business interactions, yet this session proved how innovation and collaboration can persist virtually. Feel free to reach out to me at [email protected] to learn more about how insurers are approaching innovation in these rapidly changing times.
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