InsurTech Project Scenarios
Here are some examples of consulting services offered:
Scenario One Client is an InsurTech startup:
Need: The client has identified the market niche and created the plan to efficiently deliver the insurance product to the consumer or agent/broker, but recognizes that efficiency doesn’t fundamentally change the insurance risk and the need for underwriting profit. The management team has requested help in identifying how to create underwriting controls in a streamlined environment, suggested coverages, limits/sublimits, exclusions and innovative coverages.
Solution: Vital performs market research, helps develop strategies for competitive advantages in coverage, works with your chosen actuarial team (or brings in a team from our partner network) to develop a fair and appropriate pricing model, and coordinates implementation with your IT/Data analytics team. Vital can also go to market for you to find an insurance carrier partner.*
Observation: We understand the efficiency and good design ‘must haves’ in the InsurTech environment. However, we see two key areas which could use some improvement; startups launching without a clear message to the consumer on what is covered/not covered and lack of innovation in the actual insurance contract. Vital can work with you to develop your core idea and optimize it for growth and scalability.
Scenario Two Client is a Sharing Platform startup:
Need: While creating a sharing platform for goods and services, the management team has come to Vital to identify whether users will typically be underinsured or uninsured when using their site. They are concerned that without proper identification of risks and possible solutions, they will be subject to litigation. They also wish to offer insurance either in a primary or excess position if necessary.
Solution: Vital will examine the business model, provide examples of possible types of insurance policies that will respond (if the users are insured at all) and offer potential coverage solutions that exist in the marketplace. If specialized/new coverage solutions are necessary, we will offer recommendations. If the client would like to find a carrier to partner with, Vital can provide program placement services.*
Observation: The insurance component of many sharing platform websites have not been fully vetted in the business concept development process. As TNCs like Uber and Lyft have discovered after the fact, there are often insurance gaps that result in litigation when users discover they have no insurance. They’ve had to create solutions in response. Vital would like to help you identify and develop the solutions up front!
Scenario Three Client is a traditional insurer with InsurTech incubator:
Need: Insurance carrier has separate area of the company for partnering with InsurTech related entities for IT/Data Analytics, Claims, and Risk Management which will bring their legacy products to market in a streamlined and competitive environment. However, they lack the Product Development resources to update their insurance offerings, create new coverages, and establish appropriate underwriting controls in an online setting.
Solution: Vital brings decades of experience to the table in an insurance carrier environment. We can work with you to achieve your KPIs and improve your metrics without sacrificing underwriting results.
Observation: Traditional insurers often just digitize their current products which have inherent complexities. There needs to be a stripped down methodology which produces the same or better results.