FNO: InsureTech Ep 238 - Managing Director at IA Capital Group, Andy Lerner
Rob welcomes back Andy Lerner, Managing Director at IA Capital Group, one of the longest running VCs in the InsurTech space. Andy talks about IA Capital Group’s structure, and what positive things he sees in the future state of the Insurtech industry. Andy and Rob also discuss AI in Insurtech, including both its potential impact for good and the limitations. Towards the end of the conversation, Andy and Rob discuss how traditional education has changed, and their predictions in the industry for the next 5-10 years.
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What You’ll Hear In This Episode:
[6:22] Andy talks about IA Capital Group and their primary focus on FinTech InsurTech over the past 23 years.
[8:49] What kind of companies does IA Capital Group work with?
[12:40] Who in the industry has had a challenging year?
[14:40] The process of moving to their 10th fund and the reception in the market to their work.
[15:00] How IA Capital’s investment process works.
[17:09] Insurance companies prioritize long-term relationships over quick decisions, valuing loyalty over speed.
[20:11] Investments typically have a 5-6 year holding period.
[21:51] The relationship between venture capital and private equity, where they often work together on investments but may have different strategies for selling companies.
[25:23] The three major categories: distribution, newer more innovative products, and the service providers to the industry.
[33:32] AI in InsurTech and its potential impact.
[39:36] Frontier Risk and investing in cannabis.
[43:57] what effect does it have when a war breaks out in the middle of a business opportunity?
[46:50] As a Wharton graduate, Andy shares his thoughts on how the need for education has changed in the industry.
[49:37] Where does Andy see the industry 5 years from now?