The Future of Insurance

Steve Shaffer, CEO of Homesteaders Life, and Brent Williams, CEO and Co-Founder of Benekiva, join the show to share more behind-the-scenes details about the relationship their two companies have built. Homesteaders became Benekiva's first customer while also taking on the role of first investor in a story full of lessons, insights and guidance about how a startup so new its founders still had day jobs and a nearly-120-year-old mutual insurer can work together to change both organizations. Their story is the final case in the new book in The Future of Insurance series, Volume III. The Collaborators. Highlights from the Show Benekiva is a digitized claims, servicing and new business platform for insurers Brent came up in the industry and saw the need for it first hand, and when he couldn't find a solution, he set out to build it Homesteaders pays over 60k claims per, and saw the need for Benekiva's help, and knew it would be faster to partner than build it themselves Benekiva went about things in a different way than was the norm in the industry, where most vendors over-promise and under-deliver; while people don't necessarily intend this, Benekiva almost goes 180 on the whole mindset to be completely transparent and honest about the good and the bad For HLC, they also invested in Benekiva, which was their first insurtech investment, and their first true innovation investment This took a lot of purposeful action and willingness to challenge themselves culturally to actually change their organization and how they think about innovation They didn't have the scale to create a $100m venture fund or setup a big innovation team, but neither of those things would have had the same broad effect on the company as a whole They drew a wall between the investment and client side because there could be unintended consequences of melding the two As they got into the project, they started to notice that they were deviating from the 80/20 rule to more like 99/1, where a very small number of outlier requirements were holding up the whole project, which lead to one of the tougher spots in the project They found that a consultant was working between the company, dragging the project – and their contract – out, rather than helping to move them to completion This helped inform new values for HLC, including being bold, which shows up in how they work across the business today Brent shares how different it is to build a great piece of tech vs. installing or delivering a great piece of tech, which is a whole other level of task That brings in all of the complexities of your client on top of any questions about your technology This episode is brought to you by The Future of Insurance Volume III. The Collaborators, part of the Future of Insurance thought leadership series (future-of-insurance.com) from Bryan Falchuk. Follow the podcast at future-of-insurance.com/podcast for more details and other episodes. Music courtesy of Hyperbeat Music, available to stream or download on Spotify, Apple Music, and Amazon Music and more.

Lars Boeing is a Vice President in Capgemini Invent's Insurance Practice and leads Capgemini's global Future of Claims offering. He has been working for 20+ years in consulting and corporate strategy roles, primarily on strategic projects, process optimization/ intelligent automation projects and business model redesign programs. Prior to joining Capgemini in January 2014, Lars was engaged with an FS firm in Germany where he was part of the corporate strategy department as well as the in-house consulting unit supporting the company's different business lines. His engagements at Capgemini Invent include the design of various Future of Claims strategies and roadmaps for P&C personal lines and commercial lines insurers, leading large-scale Transformation programs, the process optimization using process mining, RPA and AI solutions for P&C and Life Insurers in Claims and other areas, design of digital strategies, assessing and maturing DevOps and SAFe organizations, implementing new regulations, the redesign of ways of working and Organizational Change Management for insurers, banks and captive finance firms. Lars holds an MBA from HHL Handelshochschule Leipzig, a Master's degree in Banking from the Frankfurt School of Finance as well as a Master in Economics from University of Goettingen. Highlights from the Show Lars is a Vice President at Capgemini, and was part of the work in their annual World Insurance Report, which focused on the future of mobility insurance in the 2023 edition The question is around what the shifting patterns of mobility mean to insurance, and how insurers can start to take actions today to prepare for a movement from insurance the asset of mobility today, a car, to the experience of mobility tomorrow across different modalities and moments, even if people don't own cars They also look at how we break from the interactive pattern of product development to truly creating coverage that insureds need as their situations evolve Innovation has struggled in the industry often because the people responsible for it are separate from the main business, so they struggle to get new ideas into the core of the business For example, if we look at embedding insurance into mobility, it's looking at mobility itself as a service, and then thinking about how an insurer can be helpful across the experience and not just in offering coverage; are there ways the insurer can help coordinate mobility or provide safety guidance and support throughout a journey across different modalities, etc? The nature of what is being insured is changing, and CG talks about ACES - Autonomous, Connected, Electric and Shared - when they talk about vehicles in the future They see 8x growth for this space, while traditional Auto/Motor insurance will still be there, but will retract The nature of risk is changing, too, where it's not just about Auto Liability, but also software and cyber security risks as cars are connected and software-defined They think carriers should think about 4 things What is the value proposition carriers should think about offering in the future, and is it based on actual customer behavior and not what we say their behavior is? How do we use that value proposition to change our business model? What culture and capabilities do we need to have to support this model? What is the risk management we need around these new products? The report was built with very broad perspectives from across insurance, tech, auto manufacturers and more You can get the report at future-of-insurance.com/capgemini This episode is brought to you by The Future of Insurance Volume III. The Collaborators, part of the Future of Insurance thought leadership series (future-of-insurance.com) from Bryan Falchuk. Follow the podcast at future-of-insurance.com/podcast for more details and other episodes. Music courtesy of Hyperbeat Music, available to stream or download on Spotify, Apple Music, and Amazon Music and more.

Joshua Hollander is an experienced CEO and entrepreneur with a successful track record in executive search, executive leadership, fintech, and insurtech. He currently serves as North America CEO, Regional Director Americas and Board Member at Horton International, a boutique global retained executive search firm, where specializes in leadership roles and sales team build-outs for high-growth organizations in the fintech, insurtech, enterprise software and financial services sectors. Throughout his career, Josh has been a strong advocate for innovation, leadership, digitization, corporate resiliency, and digital transformation. He is committed to developing customized business models and implementing creative solutions to drive top-line growth, increase profitability, and improve the client experience. In addition to his role at Horton International, Josh is co-founder, Vice President, and Treasurer of the non-profit InsurTech Association, dedicated to strengthening and building the resiliency of the InsurTech industry through networking, education, mentorship, and shared resources. He is also a founding board member, Nominating Committee Chair, and Compensation Committee member of InnSure, a non-profit association that supports the development of innovative ways the insurance industry can contribute to the battle against climate risk. Highlights from the Show Josh's work at Hollander focuses on helping solve talent needs at a senior level, and he specifically has a strong focus on Financial Services, including Insurance and InsurTech He spent 20 years in the FS industry himself, which informs his work on the talent front today Talent-wise, he sees there continuing to be a demand for people who can drive innovation and change Many in the industry are approaching the end of their careers, which means having the programs to develop talent internally and to find outside talent, too Some VCs talk about how the lack of skilled CFO/Financial hands at many startups, more money was burned than perhaps would have been with more financial acumen in place COVID caused people to relook at their priorities and make different choices about where and how they work For employers, that means if you want everyone in the office or not, both are fine (and so is a mix), but every option has challenges and other considerations to be mindful of – there are no easy choices with no follow-on decisions There has also been a shift on risk aversion about working with startups, but there are people who are more risk averse, and others who lost their jobs and now have severance packages that allow them to take some career risk where they might not have before The InsurTech Association, which Josh co-founded with Bob Sargent of eSpecialty, to address a need for help in the startup space It's a non-profit to help early-stage founders get the support and guidance they need to bring their idea to a successful place The Insurance industry is hard to navigate and it takes a lot of handshakes to get to a successful relationship with buyers, so having help in going through that can be the different between success and running out of runway for a startup There are several ways to get involved with the ITA, whether you're a carrier, solution provider, investor, startup and more – just visit insurtechassociation.com This episode is brought to you by The Future of Insurance Volume III. The Collaborators, part of the Future of Insurance thought leadership series (future-of-insurance.com) from Bryan Falchuk. Follow the podcast at future-of-insurance.com/podcast for more details and other episodes. Music courtesy of Hyperbeat Music, available to stream or download on Spotify, Apple Music, and Amazon Music and more.

Andrew N. Mais was nominated by Governor Ned Lamont to be Connecticut's 33rd Insurance Commissioner. Mais is President-Elect and has served on the Executive Committee of the National Association of Insurance Commissioners since 2021. He currently serves on the International Relations, Property & Casualty, and Financial Regulation Standards committees. He also serves on the International Association of Insurance Supervisors (IAIS) Macroprudential and Executive Committees and on their Insurance Capital Standards Task Force. The IAIS is the international standard-setting body responsible for developing and assisting in the supervision of the insurance sector. Mais has led discussions in several forums on race, diversity, and inclusion at the state level and within the insurance industry and in insurance practices. He has also joined the efforts led by Governor Ned Lamont and Lt. Gov. Susan Bysiewicz to address social inequities in Connecticut, including the Council on Women and Girls and cultural competency initiatives. Mais is also Co-Chair of the NAIC's Special Executive Committee on Race and Insurance, charged with conducting research and analyzing issues of diversity and inclusion within the insurance sector. Mais previously was a member of Deloitte's Center for Financial Services, providing industry-leading thought leadership and insight on US and international regulatory affairs. Prior to that, he was a Director at the New York State Insurance Department. There he served four governors as part of the Department's senior leadership team through numerous events including the financial crisis of 2008 and major state and federal changes in health insurance regulations and laws. Even outside the government, Mais dedicated much of his life to public service. He most recently served as chair of the Council on Ethics for the town of Wilton, CT, where he lives. Other recent service includes the Maritime Aquarium of Norwalk; the American Red Cross; the Board of Finance of the Town of Wilton; and the Rotary Club of Wilton. Highlights from the Show Commissioner Mais opened with the mentality that they are open at the Department, and that we are all in this together across the industry He believes we do not do a good job marketing ourselves as an industry and how much it has to offer people He has been on the regulator side through some major challenges in the industry, including the Great Financial Crisis and COVID Thinking about how to be innovative and supportive of change, you have to start at the core mission of regulators to protect consumers and the industry to protect people and help them recover from loss Regulators also have to protect competition and health in the market, and that takes innovation A precursor of innovation is a willingness and appetite to fail He's seeing a movement to reduce friction, like easier Life insurance pre-underwriting processes to a move to risk mitigation like we're seeing on Cyber The Department in Connecticut is keeping this in mind as they consider the flexibility they need to support these efforts Connecticut has been very collaborative and supportive of innovation in the industry, which Commissioner Mais sees as a function of a number of things, including the level of education in the state, the amount of insurance activity in the state, decisions of the administration to collaborate across departments and with business, etc Climate Change is on his mind, given that CT has the second highest concentration of coastal insured property in the country, so he's not just looking at access to insurance but also efforts to reduce exposure through smarter building decisions, mitigating actions, etc. States, being independent of each other and not part of a federal regulatory system, are all experimenting, trying things, and sharing their experience with each other As President-elect of the NAIC, Commissioner Mais sees the federated model of state regulation being a big contributor to the health and strength of the industry He leaves with the idea of Collaboration and working together as central to the future of the industry; an us vs. them mentality will not work That means every party needs to come together – consumers, companies, regulators – and see how we can get to Yes on ideas that are of genuine benefit in helping people get protected This episode is brought to you by The Future of Insurance Volume III. The Collaborators, part of the Future of Insurance thought leadership series (future-of-insurance.com) from Bryan Falchuk. Follow the podcast at future-of-insurance.com/podcast for more details and other episodes. Music courtesy of Hyperbeat Music, available to stream or download on Spotify, Apple Music, and Amazon Music and more.

Andrew Johnston is the Global Head of Gallagher Re InsurTech. Based out of Nashville, Andrew is responsible for managing all InsurTech engagements (where InsurTechs are clients, and where InsurTech solutions are providing solutions to Gallagher Re's traditional insurance client base). Andrew runs a global team who conduct deep forensic research on the InsurTech landscape, and also support a number of InsurTechs themselves who originate risk. Andrew is the author and editor of the Global Gallagher Re InsurTech report. He holds a PhD from the University of London. Highlights from the Show Andrew runs Gallagher Re's insurtech business, after doing the same for Willis Re, which joined AJG's Re business in 2021. He got into the industry to look at the major trends like Cyber, the Sharing Economy and InsurTech while they were still new, and he felt that there was a strong role for a reinsurance broker in the emergence of these trends, especially InsurTech Andrew and his team produces the Gallagher Global InsurTech Report, which is a go-to resource everyone should get Today, they find that everything has a tech angle, so the term InsurTech seems unnecessary or increasingly meaningless as a differentiator While funding is down, it's driven mostly by fewer mega rounds than a general crash in funding They are seeing a better understanding at a senior level at carriers of the What rather than the How, meaning more of a focus on the value created by the solution rather than just the tech or company itself While most companies are at the point of recognizing the need to digitize and modernize, some will get modernized by proxy because the partners they work with will have digitized, and these companies will use these new tools in their business Companies are also being more disciplined in their selection of solutions, which actually can lead to more activity than fewer because buyers are more sure of what to do While Andrew sees the overall idea and structure of insurance staying consistent into the future, he sees room for aspects to shift, like less focus on squeezing fractional points out of expenses, but rather new capital, coverage ideas or buyers or insured moments This episode is brought to you by The Future of Insurance Volume III. The Collaborators, part of the Future of Insurance thought leadership series (future-of-insurance.com) from Bryan Falchuk. Follow the podcast at future-of-insurance.com/podcast for more details and other episodes. Music courtesy of Hyperbeat Music, available to stream or download on Spotify, Apple Music, and Amazon Music and more.

Randel is a dynamic insurance professional who recently joined Swiss Re's Reinsurance Solutions division as a VP of Strategic Partnerships. Prior to this, he co-founded an insurtech MGA focused on providing private passenger auto insurance to Hispanic consumers in the US. With a strong background in insurance product development and management, he has held notable positions at Allstate, Encompass, National General, First Chicago, and iptiQ. Randel is based in Chicago and is a proud alumnus of Florida International University. Outside of work, he enjoys attending sporting events, planning trips, and creating memorable meals with friends. Highlights from the Show Randel has worked in Insurance, mainly on the product side, throughout his career, and is now leading Strategic Partnerships at Swiss Re after co-founding a non-standard auto MGA There's an interesting contrast between working in niche businesses or a startup and then going to Swiss Re, given the scale, complexity and global structure of it Randel works within the Reinsurance Solutions unit, which looks at investing and supporting new ideas coming to market, especially from startups They also have internal solutions they've built that they can offer to others, including non-insurers Randel gets to play with these solutions and the reinsurance capacity to deploy into the insurtech space Over the last year, getting capacity, whether fronting or reinsurance, has gotten harder, especially if you have no background in the industry to backup your underwriting skills Loss picks are coming in higher these days, and it matters, whereas the focus was on distribution in the past Having been on both sides of the equation, Randel saw first hand how a large carrier might takes months to make a decision, while a startup could run out of runway waiting for it Looking forward, Randel is looking at ideas that have a purpose and meaningful difference, and those who are hyper-focused on those ideas and know where they're going to go and how to execute against that direction and vision Embedded is also of interest because it can create more price inelasticity, giving you room to price as you need to rather than having market pressure working against you Looking at Apple Care, these were embedded from the start and it's ubiquitous no matter where or how you buy an Apple product, and Randel sees that as what we should be trying to get to At a big carrier, Randel felt like the mentality was "We can't do this because X," whereas, at a startup, it's "Why can't we do this?" Bet on yourself - if you see something that excites you, ask yourself what the worst case is, and ask if you can deal with that; if you can, make that leap This episode is brought to you by The Future of Insurance Volume III. The Collaborators, part of the Future of Insurance thought leadership series (future-of-insurance.com) from Bryan Falchuk. Follow the podcast at future-of-insurance.com/podcast for more details and other episodes. Music courtesy of Hyperbeat Music, available to stream or download on Spotify, Apple Music, and Amazon Music and more.

As Chief Executive Officer of Irys Insurtech, Margeaux has more than 15 years of executive experience in operations and digital transformation for the insurance and finance space. Named Insurtech Woman CEO of the Year, Top 20 Insurtech provider of 2022, Forbes Technology Council member and regular Forbes.com contributor, Margeaux is not only passionate about injecting cutting edge tech into insurance, she's proactive in changing the landscape for women as well. Margeaux is a founding member of InsureWomen and InsureEquality, Network Liaison of the Central Florida network of the Association of Professional Insurance Women, as well as a member of the UCONN Fintech Masters Program Advisory Board and newly appointed Chair of the Insurance Agency Owners Alliance Tech Council. Highlights from the Show Margeaux started outside insurance and saw the difficulty in getting coverage for that business, so she got into the Commercial P&C agency space with a knowledge of the hard time people having meeting their insurance needs As she progressed, she and her husband bought an agency, and have built it into a multi-office business today Selling into the agent space is tough, and those who have found success have been grass-roots, community-focused efforts Because agents all competed against each other in a local market, it made it hard for them to come together under a common goal, but COVID changed that because location stopped being a constraint for most agents, meaning fighting against your neighbor for business was no longer relevant IRYS was built to try to solve the issues Margeaux saw as an agent, which was about the need to pull together all the great point-solutions coming out in a way that was financially viable for an independent agent IRYS is a micro-service-based approach to pull together best-of-breed solutions easily, including the data and the UX/UI, rather than trying to build all the solutions themselves IRYS hits on a lot of the buzzwords today (e.g., 360 customer view, digital transformation, etc), which is a gift and a curse because a lot of solutions promised these words, but don't deliver, so the industry is jaded and hesitant Margeaux has built a strong following on social media, especially LinkedIn, which she sees it moving from a place to show off your professional achievements and resume to one where meaningful conversations are happening today The glossing over of the truth on social media, conferences or sales pitches is dangerous as companies make decisions and expect to get something, but the reality is not what they were sold – things take longer, cost more and do less, and for a small agent, those extra costs and time can put them out of business The sunk costs of what we've put in can lead us to feel like we can't stop, but then agency owners get trapped with something that may never work, but keeps costing more Being micro-service based means IRYS doesn't need to get into those dangerous waters or be a rip-and-replace situation, instead they can work on pieces of the puzzle that are manageable This episode is brought to you by The Future of Insurance Volume III. The Collaborators, part of the Future of Insurance thought leadership series (future-of-insurance.com) from Bryan Falchuk. Follow the podcast at future-of-insurance.com/podcast for more details and other episodes. Music courtesy of Hyperbeat Music, available to stream or download on Spotify, Apple Music, and Amazon Music and more.

Sam White is the multi-award-winning CEO of Freedom Services, an ever-expanding insurance business including Action 365, Pukka Insure and Freedom Brokers in the UK, and Stella Insurance in Australia. Having started her first company in 1999 aged just 24 in her sister's conservatory, 22 years later she employs over 160 staff with offices in Cheadle, Cheshire, and Sydney, Australia with a turnover of over £14million. Sam cares passionately about diversity, equality, innovation and above all, making business human. Motivated by a desire to change the insurance industry for the better, Sam is a vocal advocate for levelling the playing field for women and championing female leaders within the industry. In addition to being a successful entrepreneur, Sam is a regular business commentator in media and have been seen discussing current business affairs on BBC's Wake Up to Money and Ian King Live on Sky News. She also hosts her own podcast "Human Business with Sam White" where she candidly discusses successes and failures with fellow business owners. Highlights from the Show Sam started her first business at 24, doing motor claim adjusting work Having started a business as a young female in a very male-dominated space, you realize there are certain things that don't work for men or women in the industry or the consumers This is what drove the creation of Stella – what if the Financial Services industry more broadly was designed from a right-brain standpoint with more creative, supportive energy, would that better meet the needs of women (and others)? They started by asking what people need, not just presuming they know, even if Stella's leadership was predominantly female, so they did a great deal of research to understand what risks people had that they needed help protecting, and how to go about that They also found things women in particular were not happy about with insurance, including the 'loyalty tax' where you get a cheaper price as a new customer, and then it goes up when you renew, penalizing you for loyalty – no one likes that, but women had stronger feelings about it in particular Stella is less about products only for women than something built from that perspective and energy Stella currently writes Motor cover in Australia and the UK, have Pet in Australia, and are adding Travel in both markets The goal is to cross all of Financial Services with their approach, and to be a global offering The Stella Effect is about their ability to add to the product with the female perspective, and either redesign an existing product or create something new, like a Domestic Abuse cover to add to Motor They give back to several community-focused organizations in the markets they operate in, and support female entrepreneur forums The future of insurance to Sam is about the original purpose of insurance to protect society, and finding a way to create coverage to protect the true unmet needs of people This episode is brought to you by The Future of Insurance Volume III. The Collaborators, part of the Future of Insurance thought leadership series (future-of-insurance.com) from Bryan Falchuk. Follow the podcast at future-of-insurance.com/podcast for more details and other episodes. Music courtesy of Hyperbeat Music, available to stream or download on Spotify, Apple Music, and Amazon Music and more.

Paul Tyler serves as Chief Marketing Officer for Nassau Financial Group where he leads the marketing strategy, digital channels and innovation activity. Paul drives the branding of the insurance companies and affiliated asset management companies. He built a direct-to-consumer channel for Nassau Re. In addition, he launched Nassau Re/Imagine, an Insurtech-focused incubator based in Hartford. Prior to his role at Nassau Re, he worked at Fidelity & Guaranty Life, MetLife in a variety of roles in strategy, marketing, operations, technology, sales, and compliance. He earned his A.B. from Princeton University and his J.D. from Cornell Law School. Highlights from the Show Earlier in Paul's career, he was part of the demutualization of MetLife, and he reflected on where they thought the industry was going back then, which was a story of consolidation and few, if any, new insurers; they also saw the stock market as the main source of financing In fact, there have been new insurers, including Nassau, which was founded in 2015 Also, Private Equity and other sources of capital have become far more impactful and prevalent than they thought Paul joined as CMO to help build the company and drive transformation to the Cloud Nassau has also been very active in helping to develop the startup community in their home city of Hartford, CT There was a push from several organizations and the government (city and state) to drive innovation in Hartford when Paul arrived in 2016 They build startup bootcamps, competitions and more Nassau opened up part of their offices to startups to help incubate them and connect them with other potential customers Post-pandemic, they've focused more on startups that Nassau could directly work with A lot of what they're seeing in their core of Life & Annuities is similar to what P&C focuses on despite all the perceived differences between the two spaces Life & Annuities have lower transaction volume, but the duration of the product adds a lot of complexity They're thinking about compliance, using ML to understanding your business, how you deal with legacy mainframes that still have business on them We talked about the issues in Healthcare and Health Insurance, and the impact on so many aspects of the economy Medicare Supplemental and Advantage plans are actually really tied to retirement planning because of the financial impact they have on your finances, so Nassau is working on this space, too The regulation and inter-dependencies of every factor at play create barriers to innovation in the Healthcare space, making this tricky and why the help of companies like Nassau would be important to get some new ideas to market It's been hard for the industry to do innovation because it means changing, and it's tricky to balance having people free from the business to look at what's new but not too removed from the business for those new ideas to get implemented This episode is brought to you by The Future of Insurance Volume III. The Collaborators, part of the Future of Insurance thought leadership series (future-of-insurance.com) from Bryan Falchuk. Follow the podcast at future-of-insurance.com/podcast for more details and other episodes. Music courtesy of Hyperbeat Music, available to stream or download on Spotify, Apple Music, and Amazon Music and more.

Carey Anne Nadeau is the Co-Founder and Co-CEO of LOOP, a car insurance agency that makes it their business to serve the underserved, including people who have no or low credit. Using data in novel ways, LOOP is capitalizing on industry-wide mis-pricing, delivering an affordable and dignified experience to its members. Carey believes that by using data we can reveal and correct for institutionalized bias, supporting smart policy making and building big businesses in the blind spot of legacy financial services institutions. She's been chipping away at this problem for 15 years, founding multiple companies, becoming a vocal advocate for justice and equality, and being a thought leader in the smart cities and open data movements. Carey honed her craft at premier research and academic institutions – the Brookings Institution and the Massachusetts Institute of Technology (MIT), where she holds a Research Affiliate appointment and a Master's Degree from the Dept of Urban Studies and Planning. She's been published in books, articles, and won national awards for her cutting-edge work using geospatial statistics to discuss the living wage and urban mobility. Highlights from the Show Carey's career was focused on data and decision making, which is where her interest in insurance as a social good came from, wondering if there was a way for data to create fairer ways to cover people She co-founded LOOP as an auto insurer that tries to undo the industry practice of using credit to price risk, and instead do so in ways that are fairer and rely on what actually correlates to risk LOOP is the only standard auto insurer that has committed not to using credit, but also doesn't use profession or other things that can drive bias Credit's issues stem from very real, normal things that people do, like having student loan debt, working as a 1099 instead of W2 employee and more Instead, LOOP considers things like the roads you drive on, and the likelihood of crashes on them rather than credit Carey talked about how credit varies in ways that's uncorrelated with risk She sees a future 10 years from now that won't include credit Regulators are more open to moving past credit than some may think because they care deeply about redlining and ensuring people are getting a fair shake LOOP can show regulators two ZIP codes and crash risk, and that there's an equal probability in the wealthy and poor neighborhood, so why would ZIP be a basis to charge more for the poor neighborhood when the risk is the same? When it comes to new data and AI, there's no silver bullet – it's hard work, and you have to figure it out, invest in the models, and monitor them over time; you can't just throw AI at it and pray it works The impact is that the average auto policy is $1100, and these people with the same risk but a worse credit profile are paying $1600, which is a massive disadvantage Segmentation matters, and many in the industry seemed to have stopped at where we got in the mid-2000s rather than being willing to really challenge things We discussed the three waves of InsurTech insurers 1st wave - eSurance, which was about digitizing the process 2nd wave - those who tried to push on tech approaches without considering underwriting mindsets as much 3rd wave - companies like LOOP that are not looking to grow at all costs, but start from a strong underwriting mindset There's a return to capital efficiency in today's macro-economic environment, which provides opportunities to get good talent and to stay steady, focused and disciplined while others are stalling or faltering This episode is brought to you by The Future of Insurance Volume III. The Collaborators, part of the Future of Insurance thought leadership series (future-of-insurance.com) from Bryan Falchuk. Follow the podcast at future-of-insurance.com/podcast for more details and other episodes. Music courtesy of Hyperbeat Music, available to stream or download on Spotify, Apple Music, and Amazon Music and more.