Insurtech: Why We’re Investing in an Underserved Market

We believe tech startups have the potential to significantly improve the insurance experience for these underserved customers and capture a multi-billion dollar market.

  • Accessibility and affordability: While these days insurers no longer use characteristics like race, ethnicity, or income directly in pricing & underwriting decisions, the use of zip code or other granular characteristics ends up having disparate impact on minority populations. Some examples of how this manifests: underwriting rules against insuring old homes or low-valued homes without data to back up that these are higher risk, agents not placing their offices near minority neighborhoods, minority customers not getting as many discounts based on employment or education, etc.
  • Unequal treatment of claims: Claims adjusters are often trained to take a more aggressive negotiation stance to settle claims with certain claimants, such as non-standard auto claimants or diverse injured workers in Workers Compensation. Imagine an immigrant factory worker without a strong grasp of English, a lack of familiarity with insurance and litigation, and a fear of losing a job they desperately need. If that worker gets injured on the job, they are often in a position to be “bullied” by the insurer and their employer into accepting a lower claim settlement.
  • Poor service (or worse): For example, linguistic profiling is a practice of identifying someone’s characteristics (e.g., race, education) based on their speech, voice, or writing. As might be expected, there’s some evidence that this has occurred on phone calls with insurance agents or call centers.
  • “Isolated” incidents: Even if insurers intend for no unfair discrimination to occur, it might still be happening at a local/individual level with a few “bad apple” individual agents, claims adjusters, underwriters, home inspectors, etc.
  • As founders looking for funding: Apply here
  • As insurance professionals who want to invest for the first time or collaborate with us: send an email to josh.taub@gmail.com that briefly describes your background and interest
  • Existing insurance investors: Send an email to lolita.taub@gmail.com and we’ll see how we can best collaborate
  • Seed or pre-seed, preferably post-revenue
  • U.S. Property/Casualty
  • Typical check size up to $30k

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InsurTech early-stage Investor w/Lolita Taub. Instructor at The Infinite Actuary. CAS Fellow. Formerly at Swyfft, Farmers Insurance.

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Josh Taub

Josh Taub

InsurTech early-stage Investor w/Lolita Taub. Instructor at The Infinite Actuary. CAS Fellow. Formerly at Swyfft, Farmers Insurance.

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