Just published: a detailed case study on the first year of Slice Labs. (see @Celent_Research http://bit.ly/2pgJ65b ) This insurtech delivers a tailored insurance contract to sharing economy operators on a digital platform. Homeshare coverage is live in production in multiple states and rideshare was just released to pilot. The experience of Slice Labs provides a valuable benchmark against which insurers, insurance technology providers, and insurtech firms can measure their innovation efforts.
Truly disruptive insurance innovations are rare. Most insurtech propositions are service improvements for current products in existing markets. Slice Labs is disruptive in that it targets an underserved customer niche with a proposition that involves changes to the core insurance product using new technology tools and development methods. The solution was delivered to pilot within one year at a predicted and managed cost within the limits of their initial capital raise. This combination of insurance expertise, new tech skills, and dev ops processes illustrates a new model for insurance development.
Some of the key lessons from the case study include:
- A one-year timeframe and an accurately predicted investment delivered a minimum viable insurance product and IT platform. This low-cost threshold and speed challenge in-house insurance innovation approaches and argue for wider use of greenfield initiatives.
- The effort and elapsed time necessary to identify a risk sharing partner are significant and should not be underestimated.
- Affinity groups/communities of interest can create significant pull demand.
This model is repeatable. The challenge for incumbent insurers is to develop approaches which allow them to benefit from the new economics at work in insurance product development.