
January 27, 2022
Industry Challenge
Millennials are Now the Predominant Buyers of Insurance

What: Millennials have now eclipsed both Gen X and Boomers as the primary buyers of insurance, and will be joined in three years by Gen Z. The generational differences are accelerating a new “sweet spot” of buyers that are very different from past generations.
Why it matters: Customer demographics and consumer buying habits are changing, which should really drive online purchasing as a top priority for carriers. Lemonade and other similar companies have been planning for this shift, and have been aggressively marketing to and procuring these customers early. Lemonade is adapting to the new needs of these customers as their lifestyles change.
Industry Challenge
Brazil’s Regulatory Environment Could Supercharge Fintech and Insurtech Innovation

What: The Brazilian government has done a lot to modernize Brazil’s financial infrastructure, going as far as creating a Venmo-like cash management app called Pix that is used by 6 out of 10 Brazilians. These efforts are establishing Brazil as a great place for experimentation and innovation in the insurtech and fintech industries.
Quote: “The open banking initiatives adopted by Brazil’s Central Bank are absolutely tailwinds for fintech innovation, As consumers regain control of their data, it creates space for new entrants to the banking ecosystem and creates more competition, giving consumers access to better, cheaper, fairer, and more secure financial products and services. This includes giving fintechs the power to build for previously [underserved] or unserved segments of the population.”
Why it matters: Creating an environment that is well-suited for innovation is difficult, but it seems like Brazil is on the right track. We’re hoping to see new products and approaches to insurance emerge in Brazil that will eventually percolate to the rest of the world.
Read: Fintech and insurtech innovation in Brazil set to take off on regulatory tailwinds
Industry Challenge
Insurtechs to Focus More on Underwriting in 2022

What: Even though insurance underwriting is a massively important part of the insurance process, it has received a surprisingly small amount of innovation compared to the rest of the insurance process. 2022 could be the year where we see a lot more focus on underwriting.
Quote: “I think there’s going to be continued increased focus on the actual underwriting performance,” says John Swigart, co-founder and CEO of Pie Insurance Holdings Inc. “There will be a greater expectation that we should be leveraging our technology in our different distribution models and our different approaches to data and analytics to actually drive a better result for the customer in terms of lower prices and also better results for our shareholders in terms of better loss ratios.”

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