“There are 46 insurance companies in Fortune 500, with an average age of 95 years. Cumulative market cap is more than $1T,” said Spencer Lazar of General Catalyst Partners. However, according to Morgan Stanley/BCG consumer’s survey, half of policyholders have one or less interactions per year with their insurers — and less than 60 percent of those who made the contact are satisfied with the experience. Time for a tech overhaul!
Insurance policies can be complex, and some policyholders may not understand all the fees and coverages included in a policy. Indeed, people typically buy policies on unfavorable terms. In 2014, two major insurers, Blue Shield and Cigna of California, were sued for misrepresentation of the coverage network, which caused delays for their consumers in accessing needed health care. Yet, insurance should help societies and individuals mitigate catastrophes’ impact through the way it changes who bears the cost of losses.