Is Generative AI the newest Insurance policy maker in town?
In Australia alone, the general insurance market is huge. In 2022 it was worth ~$80B.
At the same time, it's common knowledge that the industry is highly regulated and held back by legacy systems.
For customers there is a push to protect sovereignty, and for insurers and regulators, ensuring financial liquidity is front of mind.
In the last five years, there has been gradual transformation driven by trends such as digitization, embedded insurance, verticalization and demand for data-driven insurance.
Looking through the looking glass, we believe Generative AI could be the unlock for "disruptive innovation" in the industry, and fast track existing trends.
Here's a peek into why we are excited and our investment thesis 👇
1️⃣ There will be a rise of startups targeting "point source solutions" in the value chain. Early movers include Sixfold, AKUR8, Curious Thing AI, Brainfish, Zelros
2️⃣ A Harvey AI equivalent (custom law LLM) for insurance is yet to happen, and when it does it will be a market disruptor
3️⃣ There will be a surge in demand for startups tackling early prevention and mitigation of claims, particularly in life insurance e.g., Sahha, Vively, Humn
... and many more.
Of note, building with responsible AI at the core of solutions will be table stakes for all players.
The link to the full investment thesis in collaboration with Insurtech Gateway, on Generative AI in InsurTech, is in the comments!
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Would love to hear what your predictions for the field are and if you know anyone disrupting it! Please comment, like and share 💛.
Thank you to Nick Proud, Danica Bunch, Peter Tilocca, Timothy Chan CIP, Soohan Kim, Michael Mifsud, Eric Tran, Nissan Dookeran, The Builders Club Fellows, Aleksander Dahlberg, David McKeague, Daniel Kimber and more for your thought partnership on this thesis.
#investmenthesis #insurtech #marketmap #australia #genai
