Insurance exists to manage or otherwise mitigate risk.
But what does that mean?
Insurance, depending on the insurance line of business, exists to protect the physical assets of people, families, and businesses.
Insurance, depending on the insurance line of business, exists to protect what people – or businesses – say or do … their actions and behaviors, if you will.
Insurance can accomplish its objectives if, and only if, the contract (policy) wording ‘works’ – that is, if customers, producers, and the legal establishment understand and adhere to the terms, conditions, and restrictions of the contract. No claim should be paid that does not meet the terms, conditions, and restrictions of the contract.
Insurance can accomplish its objectives if, and only if, it is and remains a regulated industry preferably by each of the US States (for US insurance commerce).
Fortunately it is a fact, and not an opinion, that there is no legal, insurance regulated entity called “InsurTech.” It is also a fact, and not an opinion, that regardless of whatever current and emerging technology a licensed insurance firm uses can NOT transform the insurance firm into a technology firm.
An insurance firm (that is, a licensed insurance regulated firm) will only financially succeed if it at least meets, and preferably exceeds, the criteria defined by the metrics of the insurance lines of business it conducts commerce. The portfolio of technology the incumbent or startup insurance firm uses is irrelevant to the firm’s financial success.
Insurance is not a game for venture capitalists to exploit and plunder. People’s lives, income streams, assets, and livelihoods are continually at stake.
I don’t see much difference between vc exploitation of the insurance industry and a nest of vampires sucking blood from their victims.