Product: Insurance has a $1.2 trillion protection gap (per Swiss Re),
yet the industry’s revenue is flat versus GDP (for 2008 – 2018, per
Swiss Re). Tech is increasingly allowing customized, underwritten
insurance. New products range from personal lines innovations to
cyber and flood. One area where there has been difficulty despite
many efforts is parametric insurance, which looks great on paper
but has usually seen poor sales.
Distribution: Insurance agents capture twice the profit of carriers,
according to McKinsey. While agents are not going away — the
U.S. government counts 800,000 of them — market share is
shifting towards tech-enabled agents, digital distribution of simpler
products, embedded insurance, and straight-through processing of
tasks formerly handled by agents such as underwriting and claims.