An AI agent startup eyeing the $2T P&C insurance market can target four (enterprise) attack vectors:
Firstly, you could tackle core insurance operations of an agent, broker or insurer. Focus on levers such as operational efficiency, customer experience and risk selection. With an industry expense ratio near 40% and NPS in the 30s, there are ample opportunities.
Secondly, you could crack the embedded insurance opportunity, whereby integrating insurance products into digital purchases. Insurance or guarantees can create trust, by exchanging volatility for certainty. Thus, embedded insurance can help vendors sell more products or services by reinforcing trust.
Thirdly, you could advance incumbent predict and prevent strategies, where procured data and advice helps differentiate an otherwise commodity insurance product. You could be the product, like a computer vision AI safety agent. Or, you could facilitate a marketplace of products and services, performing all tasks required from vetting to matching. Ultimately, complex multi-dimensional risk management and safety choices will be best performed by - or at least, simplified by - AI.
Finally, you could help clients decide how to spend their claim money. This untapped vector leverages a unique moment: when clients are both ready to buy and have funds to do so. How might a client redesign or rebuild their operations after a fire? In many cases, a like-for-like replacement or rebuild is not ideal for the business, insurer or society.