InsureTech is a lie

Clickbait title, but accurate. #SorryNotSorry

We’ve all seen the press releases from SugaryFruitDrink Co. and the like heralding the “InsureTech” revolution – how they will completely change how we all interact with insurance. So how is that revolution going?

I recently experienced the InsureTech ecosystem as a consumer seeking alternatives for a fairly routine type of business – one of the key use cases. The process was completing a very short pre-qual application and entering my contact info. After that I was told I’d get a call – which I did within about a minute after submitting. The call went over more questions and I was told they had an option for me – great! I was then cold (luke-warm?) transferred to one of the big name companies where I was asked more questions and, ultimately, found out I wasn’t qualified.

The result was not problematic and actually expected. However, it laid bare the gulf between the promise of InsureTech and its reality. For all its pomp and circumstance what InsureTech delivered, at least in this specific instance, was little more than a referral. Said experience wasn’t even as advanced as that of a comparative rater; a tool existent since the early 90s. I’ll also note that after I wen through this process I was hounded by follow-ups, a disincentive to use said system entirely.

I am being harsh but I don’t think unfair. On the harsh side, InsureTech means a lot more than just consumer experiences, and my experience could be unique. But as to being fair, InsureTech is the one promising revolution and delivering a re-packaged (and strictly worse version) of what already exists.

Maybe these products and services will, ultimately, be revolutionary. But at least for commercial insurance consumers, if this is our Bastille moment I’d suggest stocking up on cake.