The INSURTECH Book

From Insurance Premium to Discrete Event

By Sylvia A. Michalski

Strategic Advisor, S. Michalski Consulting

The insurance industry, $4+ trillion globally according to a 2016 global insurance markets report published by Allianz,¹ is considered to be one that hasn’t changed for over 75 years, with companies developing newer business models focusing on the areas of distribution, policy comparison, and coverage. Consumers often purchase insurance policies, whether home, life, auto, etc., paying premiums without an understanding of what their policies covered or excluded. Businesses also purchase various insurance policies to cover their operations, whether for general liability, errors and omissions, etc. They can insure themselves on a very broad level to mitigate risk. Startups in the UK, US, China, and Germany are showing alternative ways to have insurance coverage: buying groups; pay-by-mile for autos; crisis crowdfunding; social risks (marriage, child safety); this includes paying back a portion of premiums. London-based Bought By Many, an InsurTech firm that uses social media and search data to sell insurance, focuses on consumers’ insurance (via buying insurance as collective groups) for specific requirements such as pet insurance, gadget insurance, or private health insurance. Startups are also focusing on creating new offerings for business buyers, small and large, with better digital offerings, and focusing on specific sectors, from insuring startups in their specific ...