Ever since the Italians issued the first insurance contract in 1347, companies have been making money issuing insurance policies. It’s not just about accurately predicting your claims so you can price policies that are profitable. It’s about having a massive pool of cash that you receive from the people you insure which can then be […]
There aren’t many trillion-dollar industries, let alone multi-trillion-dollar industries. One of the biggest industries in the world, insurance – property, casualty, and life – premiums amount to approximately $5 trillion globally, accounting for 11% of gross domestic product in the United States. We previously discussed how technology is reshaping the insurance industry and today we’re […]
Warren Buffet’s success can largely be attributed to the insurance industry, the engine that consistently propelled the expansion of Berkshire Hathaway since 1967. The premise is quite simple. People pay insurance premiums which then get set aside into a pool of money called a “float” that insurance companies can then invest. That float is a free loan […]
Think about asking someone you trust to do something important when you die. Unless this person really, really cares about you, what are the odds they follow through with what you asked them to do once you’re dead? Now think about asking a corporation – who lists you in their system as a number – […]
We’re all familiar with how insurance works because we are all forced by law to purchase insurance for various assets that we don’t own. Depending on how risky you are, depends on how much you pay each month in the form of “premiums”. Those premiums then go into a bank account, a giant bank account, […]
One reason Warren Buffet likes the insurance industry is because of the “float”, a term that refers to the amount of money an insurance company has taken in but not yet paid out in claims. “Float” acts as a free loan that can be used for safe investments that only need to be cashed out when a claim […]
Our recent article on 10 Artificial Intelligence Startups in Insurance has been receiving all kinds of interest from our readers which shows we’ve touched on a hot topic. In that article, we talked about how auto insurance companies are not operating in a sustainable fashion and the only way we can resolve that is through technology. It’s […]
With somewhere around 2,000 artificial intelligence (AI) startups out there, applications have been identified across every single sector you can think of. While few industries are as mundane as insurance, it starts to become interesting in the context of using AI in insurance. On one hand, the predictive powers of AI threaten to all but […]