Mica Cooper, CEO & President of Aisus/InsureCrypt opens up about so-called ‘disruption’ in the insurance industry. According to Mr. Cooper, we’re not seeing it…

Mr. Cooper notes how much people are talking about innovation, disruption, evolution and revolution in the insurance industry. He sees innovation artificial intelligence (AI) and machine learning. He points out that some innovation is “not legal”, as some Insurance Commissioners point out. Insurtechs say they could innovate or disrupt if they had more leniency. He questions whether we are seeing true revolution or disruption?

Innovation is characterized by “process improvements.” Disruption is characterized by solutions to problems no one had previously defined, creating a whole new market. In the travel industry, Hotels.com was a true disruptor, launching the online travel market and making a billion dollars in their first year. So, disruption is characterized by significant growth. Many so-called disruptors are simply using investments from Wall Street and Silicon Valley to “buy business.” They are growing, but at a tremendous cost.

Mr. Cooper says we are not seeing tremendous growth by insurtechs right now. We are seeing innovative ideas that are smoothing out rough spots in the insurance processes like customer service, claims, reinsurance, underwriting, data. “It’s all innovation at this point.”

He is hopeful that from continued focus on improved business processes and more service-oriented insurance, new products and new business opportunities will develop. Maybe, someday a company will create a new product that didn’t exist before and we’ll see a whole new market…and disruption, but not yet.

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