Is Insurance a Service or a Product That You Can Buy?

Insurance can be a bit tricky to understand, but let's break it down. In many ways, insurance is a service that you can buy, rather than a tangible product.

Insurance companies provide a service by offering protection against financial losses, which can be caused by various risks such as accidents, natural disasters, or illnesses.

Think of it like hiring a security guard for your home or business - you're paying for their service to keep you safe. Similarly, insurance companies offer a service to protect you financially.

Insurance policies are often customized to meet the specific needs of the policyholder, which is a key aspect of a service.

Insurance-as-a-service models are emerging, with three distinct approaches identified. Multiple start-ups are working on their own versions, with varying levels of complexity.

Companies like Corezoid are rebuilding internal processes within a digital ecosystem, but these aren't licensed insurance products or solutions. This approach focuses on streamlining administration.

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Several companies have built products to service a core process within insurance, such as underwriting or customer data management. These solutions offer efficiency in specific areas, but have limitations.

Here are the three key insurance-as-a-service models:

Insurance is not a one-size-fits-all solution. It's a highly customized service that requires a deep understanding of the individual's or business's unique needs and circumstances.

Insurance policies can be tailored to fit specific requirements, such as coverage for a particular type of equipment or liability. This level of customization is a key factor in making insurance a service rather than a commodity.

A good insurance provider will take the time to understand the client's goals and risks, and design a policy that addresses those specific needs. This personalized approach is essential for ensuring that the client receives adequate coverage.

Customization is not just about selecting specific coverage options, but also about the way the policy is structured and managed. For example, a business may require a policy that is designed to meet the unique needs of its industry or location.

A well-designed insurance policy can be a valuable asset to a business, providing peace of mind and financial protection in the event of an unexpected event or disaster.

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Insurance as a Service has gained significant traction in recent years, with multiple start-ups working on their own version of the model. Companies like Corezoid are helping businesses streamline their administration by rebuilding internal processes within a contained digital ecosystem.

These solutions are not licensed insurance products or insurance-specific solutions, however. They're more focused on digitizing internal processes.

There are three distinct approaches to insurance-as-a-service models, as identified by Anton Verkhovodov. Here's a breakdown of each:

* Internal process digitisation

+ Focuses on rebuilding internal processes within a digital ecosystem

+ Companies like Corezoid are working with partners to achieve this

* Core service digitisation

+ Builds products to service a core process within insurance

+ Examples include RiskPossible, which helps businesses with underwriting

* Full-stack digitisation

+ Operates via a B2B2X model that matches partners' needs

+ Qover is an example of a full-stack insurance provider with an end-to-end product

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