Since 2010, venture investors have invested more that $2b into insurance startups. These startups are rethinking the insurancesystem and creating completely new kinds ofinsurance products. TechCrunch breaks down some of the changes that startups are bringing to the insurance industry.
You’d think after three hundred years and a market size of $1 trillion in the United States alone, insurance companies like MetLife and AIG would have nailed it. But they haven’t. Instead, they’ve left millions of Americans paying toward deductibles they’ll never use. Once known for consistency and stability, insurance companies have quickly found themselves at a crossroads — either stay the course or adapt to change (as seen in the banking, transportation and the food services industries). Ideally, it’s the latter. With millennials on track to spend more than $200 billion by the beginning of 2017, bold and scalable moves need to be made if insurance companies want to avoid becoming the next print publisher. So, how can insurance companies act fast and intelligently? The answer is simple: microinsurance.