Only 15-20% of insurtech start-ups have promise; the rest will fail: says Starr Insurance Companies Greenberg
The majority of insurtechs startups will fail, Starr Insurance Companies chairman and chief executive officer Maurice R ‘Hank’ Greenberg has said.
Speaking in an episode of AM BestTV, he said that although insurtech is entrenched in the insurance industry, he expects many will not survive.
“I would say about 15-20 percent of the ones we have looked at have something to offer. Most of the others I think will be failures,” he said. “It will have a profound effect on the industry going forward. There is no question about it in my mind.”
He also discussed how technology has aided his company in the Chinese insurance market.
“I would say that on the commercial lines side, Starr brings knowledge that many Chinese insurance companies do not have in underwriting,” said Greenberg.
“On the personal lines side, there are some opportunities different than are here in the United States. For example, technology is going quite well in China, as is online marketing. You have to operate to fit the country that you operate in.”
Greenberg added that he strongly believes the change that emerging technologies are bringing to the insurance industry will be a tremendous asset.
“I do not resist change, because it is extremely important to our business and is constant,” he said. “If a company resists change, the likelihood that it will be successful is doubtful. Change has an effect on our business and it is usually for the better.”
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