The newly formed advocacy group sent an open letter to the insurance industry, laying out its aims to play a pivotal role in shaping the industry’s trajectory by advocating for responsible innovation, fostering the development of new regulatory frameworks, and promoting heightened accountability.
The InsurTech Coalition, comprising founding members Root, Lemonade, Branch, Clearcover, Boost, Vouch, Amplify, and Indigo, has taken a proactive step by crafting an open letter addressed to the industry. As part of the group’s launch, InsurTech Coalition has also set up a website: www.insurtechcoalition.com.
In a statement released by the group, the coalition outlined its foundational principles, emphasizing the responsible use of technology within the insurance domain.
According to the group, its mission is centered on guiding the industry towards a future characterised by innovation that is not only transformative but also ethical and sustainable. By championing responsible practices, advocating for regulatory advancements, and prioritising accountability, the InsurTech Coalition seeks to carve out a progressive path for the entire insurance technology landscape
Other foundational principles include:
- Use technology responsibly in insurance
- Empower modern consumers with the innovative tools they need to protect themselves, their businesses and their families in the evolving insurance landscape
- Collaborate with regulators in building new frameworks to support emerging technologies and companies, never losing sight of consumer protection
- Provide transparency, better pricing, and a better customer experience
- Re-imagine insurance products to manage risk more efficiently
- Make insurance products more available, affordable and accessible to all people in all communities
The group’s overarching mission is to enhance transparency, improve pricing models, and elevate the overall customer experience by reimagining insurance products for more efficient risk management.
A core objective of the InsurTech Coalition is to work collaboratively towards making insurance products more transparent, affordable, and accessible to diverse communities. The coalition emphasises that its goals are aligned with the fundamental purpose of the insurtech movement: to cater to the expanding demographic of digital-first customers, swiftly adapt to industry dynamics, and enhance the accessibility of insurance across all communities.
The coalition acknowledged that one of the major challenges within the insurtech segment is navigating the reshaping of the insurance landscape while carefully considering the interests of all stakeholders, including employees, regulators, government entities, and customers. Balancing these diverse interests poses a significant hurdle that the coalition is committed to addressing as it works towards its transformative objectives.
“The insurance industry is in a time of radical change and innovation with new ideas challenging old business models and upending the status quo,” the statement said.
“Telematics and data science have profoundly altered the way we assess and understand risk, while new customer-facing technologies and artificial intelligence are transforming the way customers buy and interact with insurance products and services.”
The statement went on to say that significant transformations create vast possibilities, and they highlighted the fact that insurtech firms stand at the forefront of this sweeping change. “Our coalition aims to foster responsible innovation while furthering the collective efforts to provide the best possible insurance experiences to our customers.
“Our agility and ability to serve the ever-changing needs of today’s customers through cutting-edge technology position this group as the voice for the future of the industry.”
The coalition has also set down principles regarding the use of AI and other next generation innovations. “We’re committed to the responsible use of technology in insurance and in assisting regulators in taking on the difficult task of building frameworks to regulate new and emerging technologies,” they noted.
“We believe the InsurTech Coalition answers this challenge. The InsurTech Coalition is committed to driving the insurance industry forward in a way that aligns with our shared values of transparency, fairness, and consumer empowerment.”
As a strategic partner in navigating legal intricacies, law firm Mayer Brown LLP is providing advisory support to the InsurTech Coalition. This collaboration underscores the coalition’s dedication to ensuring its initiatives align with legal and ethical standards as it strives to bring about impactful and positive changes within the insurance sector.
Jared Wilner, a partner in Mayer Brown’s insurance industry group, said: “It is an honour to advise the InsurTech Coalition and support it in its mission to educate interested parties with respect to the adoption of novel uses of data and technology into insurance business processes, be a resource for the insurtech community, and advocate for consumers of insurance products.”
