Using New Tech to Compete in an Old Industry

This Harvard Business Review podcast episode interviews Professor Lauren Cohen about his case study on Hippo, an insurtech company disrupting the traditional home insurance market. The discussion covers Hippo's unique approach of targeting riskier markets and digitally-savvy customers, eliminating the need for agents, and leveraging AI for pricing. Cohen highlights that while insurtechs like Hippo have successfully attracted customers by offering a streamlined digital experience, they haven't yet proven superior in risk assessment and loss management compared to established players. The interview also explores the challenges and opportunities in the insurance industry, particularly regarding the impact of climate change and the role of state-level regulation. Ultimately, the episode suggests that while the long-term success of insurtechs remains uncertain, their innovative approach to customer interaction and potential for data-driven improvements offers a significant challenge to traditional models.