True innovation sometimes destroys industries. Ask Kodak, Blockbuster, taxis, car GPS modules, and Borders:
How did innovation work out for you?
Paul Carroll wrote a great article on Insurance Thought Leadership on whether innovation is beginning to destroy the auto insurance industry.
He starts with some great evidence: Volvo, Google, and Mercedes have already accepted all liability for autonomous cars. To compete, other companies may provide the same level of liability protection. If autonomous cars become the new normal, then what’s left for the auto insurers?
Whether it happens next year or in twenty years, you better pay attention. No one saw this coming just ten years ago. It won’t be long until the same threats make their way to other lines of insurance. With the internet of things and telemetrics, our homes may be smart enough to prevent water leaks, fires, and other routine insurance occurrences.
Although we’re focused on merging insurance claims, legal, and technology, we focus ten years out to make sure we’re not wasting our clients’ time. Every time we hear about innovation, we must ask ourselves whether it will improve the current industry or destroy it altogether.
For those of you heavily invested in the auto insurance industry, consider this your warning. You are on the clock. For everyone else, this should be a warning, too. Embrace technology as much as possible.
You don’t want to be the guy moving up the corporate ladder at the next Blockbuster.