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November 11, 2022


What: Multi-factor authentication (MFA) isn’t being implemented properly by many businesses and underwriters aren’t asking the right questions to assess this risk. This gap in questions is causing carriers to take on more risk than they would otherwise typically take. 

Why it matters: Adoption of best practices is the achilles heel of cyber coverage. MFA, password changes, and automatic logouts are inconveniences that many business owners try to avoid. The risk seems distant and the annoyance is always apparent. Nobody thinks they’re going to be targeted by cyber attacks, but the growing reality is that more and more companies are.

Read: What Cyber Underwriters Miss: Small Businesses Aren’t Using MFA Correctly, Advisen Panel Says


What: Pricing risk based on a single driving score is only skimming the surface of what telematics can do. Carriers that fully integrate telematics into their business operations can offer more tailored and competitive products to their customers.  

Why it matters: Connecting IoT data into insurance products is a process that’s currently in its infancy. Taking auto coverage as an example, many companies are relying on simple driver scores to price risk. However, IoT data has the potential to price much more holistically based on factors such as time of day and location. We are really just scratching the surface of what IoT data can do.  

Read: How to Create Fully Integrated, Personalized Telematics Offerings—And Make a Profit


What: Amazon is taking what it’s already good at and applying it to Insurance. Its new marketplace will have a simple purchase process where every carrier can issue a policy digitally. The marketplace will then use customer reviews, star ratings, and claims acceptance rates to add transparency. 

Why it matters: Every carrier and agent should have a “buy now” button – that’s the lesson that Amazon’s latest entry into insurance is likely to teach insurers. Being able to close the loop is a massive advantage and is why Amazon is starting with just a few carriers. Many other marketplaces have a mix of options for checkout – from fully digital to requiring a phone call to an agent. Amazon’s digital only approach means that customers don’t have to go through the hassle of figuring out how to buy the policy. 

Read: Introducing the Amazon Insurance Store—A New, Simple, and Convenient Way to Shop for Home Insurance

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