300 years ago, insurance business started with no technology. Just coffee! Business was done through proper contract making, based on the foundation principles of Utmost Good Faith and True Agreement of Minds.
There was lack of technologies as insurance business continued to progress and expand, same for the physical distance and separation between true insurance providers and ultimate insurance buyers, and all the stakeholders involved around and in-between them, and at the same time, due to increasing difficulties in following and fulfilling the above said insurance contract making foundation principles, together with the enhanced interactions and conflicts of various asymmetries and interests, also human nature and human weaknesses, amongst the multiple layers of stakeholders along the insurance food chain, yet, instead of settling and resolving all the issues and conflicts before binding insurance contracts at inception, insurance business was allowed to proceed simply by turning all the difficulties, inconveniences, and disadvantages into 'advantage', and selling only 'products' at the Last mile, by creating, manipulating and using consumers' ignorance and inability, and to just trading dollars based on sales volume considerations! For the sake of 'business', it was done subtly with the full collaboration, support and approval from people in the whole Insurance Industrial Organization, as developed, evolved, and organized over time, voluntarily and involuntarily!
That's how the current old traditional Insurance Business Model came into being, and that's also how and why Insurance business has become what it is and the way it is today! Overall, just an immense reverse subsidizing game in global scale, particularly after the Titanic and the two big World Wars, and especially when risk capital providers in the form of investment capitals with their OPM (Other People's Money) considerations and objectives got involved also! In essence, doing Insurance Business by subtly breaching and sabotaging the very foundation principles of Insurance Business itself! All done with a sense of impunity! Through exercising authorities and installing justifications, and excuses! Using consumers' ignorance and inability! In all aspects and all functions, as necessary!
The end consequence is, Insurance Business has been virtually hijacked to become "insurance business" in name only but not real Insurance Business, which should carry its social responsibility and ethics, and many innate requirements attached therewith. It was real deep 'Blue Ocean' matter, at the time! Long before the term 'Blue Ocean' was even invented and created! It has been in practice for over a century and became red with ordinary consumers' blood, as it is now! We think the time has come to reinvent and reformat the Insurance Industry, to put new energy into it and to disrupt, ultimately a new 'Blue Ocean' strategy and a new Business Model, using Insurtech!
How insurance business is supposed to be done, and should be done? Simply just making it easy at sales, but purposely not that easy at claims? Selling 'products' in name only? Is it better and easier than being perceived as difficult at selling? But it is even worse, when it comes to insurance business! Agreement to buy is not True Agreement of Minds! Insurance business is just basically made to become a manipulated trading dollar game! Insurance buyers are being educated and misled to know and play only on price and relationship! Including those who represent them! "Insurance has to be sold" is interpreted only as making people buy, by whatever! Trust, Peace of Mind, Sense of Security.............etc.? Nothing truly measurable or quantifiable! And no real understanding about facts and details either! Things are allowed to be arranged and organized in such a way that nothing can ever be done right, so that the chance of a smooth and successful claim is diminished, or just being played and controlled! Selling insurance but actually don't want to insure! Failures, by design! Utmost Good Faith and True Agreement of Minds? All empty and superficial only!
Where is social responsibility and public interest in a key foundation industry of insurance for the society? Can proper insurance business be practised? All just immersed themselves in a trading dollar game, with their career planning and business planning to ride on it also! Success, or actually failure, industry-wise?
Misfortune of a few, as claims got denied, will never be made known publicly anyway? So, what about Customer Care? Super Service? A joke! What does 'service' really mean and entail in the first place? It is a pure misapplication of the Insurance Industry Model! Now, by using 'Digital Transformation', so that no named human will ever be held responsible? Blame it all on the computer system? "Modified" Blockchain? While people don't even know what the original was! AI (Artificial Intelligence)? Even better! But who designed it, authorized it, put it into place and use it? Client Centre? Whose clients are they anyway? What for? Grade them for different "service level" to be provided? All Tech Utopia! Ignoring ignorance, and don't care! Potentially just more ignorance, inabilities, and conflicts! Therefore, even more misconceptions, mistrust, and misunderstandings about insurance! Just to carry on with the same old traditional Insurance Business Model in trading dollars, and the same old money wasting manipulation games! No matter what, people have to buy insurance anyway! They have no choice! Everything is all under control ! We have collected a lot of examples, proofs and evidence in our study, to prove our points. We hope visitors to our website will bring us even more!
Based on the current paper based insurance system, there are already mountains of unwanted problems everyday, would a paperless system and doing it the same old way make things better, or worse? What a non-consumer intended and designed "paperless" system and structure could do and accomplish? Would consumers' ignorance and inability just continue, if not even more, and being used? Consumer Interest? They are not even helped and given the ability to become an educated buyer, nor can they buy freely! And sellers cannot sell freely either! So, more ignorance, inability, and conflicts are just made to interacting together! The end game, buyes don't know what they are buying, and sellers don't know what they are selling! Ultimately and unavoidably, just selling "products"! Will claims be made easy, or to deny easy? All just based on sales volume and trading dollar, and related considerations! Adding more conflicts and complications. NOT insurance! What a great business plan and business model! Failure or success, actually?
Simple theory: Business will thrive if customers like to buy and employees like to deliver. But how to do it? To what degree does insurance business fit in with such theory? None! Insurance business is to truly taking risks and paying claims, or just say it, and not? Just thought what will not happen will never happen? And when it happens............? Same old perpetually repeating stories! Can we make more money that way? Where are we?!
The big picture is, an annually renewing US$5 Trillions Insurance Industry is ready to change! And change for the better and for real! When consumers know and understand, or even just starting to ask questions, therefore, instead of letting their ignorance and inability continue to be used, they will drive the change! Insurance business will become truly about insurance! Our industry better make ready, or else!
Only justice and fairness can bring hope and future to this world. The time has come. It has to begin with Insurance Business doing what it is supposed to do, the way it should be!
Insurtech leaders and pioneers, where are you? Are you ready? How much more do you care to know and understand? Or simply just carry on? And continue...............!