What Insurance Innovators Learn from the Co-operators' Greenfield Startup
For those who are trying to deliver innovation / digital transformation in insurance, Co-operator’s announcement that it is launching a greenfield proposition to enter the sharing economy space holds valuable lessons. (See press release http://newsreleases.cooperators.ca/2018-07-18-New-Insurtech-Partnership-to-Provide-On-Demand-Insurance-in-Canada) A stand-alone subsidiary named duuo will use the @SliceLabs platform to provide pay-per-use homeshare insurance. Subsequent products will launch to deal with short-term, episodic coverage of periodic risk in other lines of business.
Their approach addresses two issues that, as Celent research has shown, usually limit insurance innovation efforts. The first deals with the major barriers to transformation, and the second with a recognition of the new economics at play with digital insurance product development. This blog post details how the Co-operator announcement deals with these issues.