Industries that don’t produce physical products, such as our industry, insurance brokerage, are subject to different rules. And it's in these industries that the maxim ‘fast, cheap, or good’ is most flawed, as advances in technology make it possible to have all three over a longer period of time. At Embroker we’re often asked, if we’re providing the customer with the same level of service as other brokers but also investing significantly in technology, won't that make us a lower-margin business? In the short run, it absolutely will. One of the main reasons that venture capital is such a force for change is that it makes it possible to operate a business with negative margins for an extended period of time. The best justification for negative margins is large investment in technology, because over the long run the equation changes

https://embroker.com/blog/insurance-myths-part-iv-fast-cheap-or-good