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| 3mSilicon Valley Needs to Accept That Insurance Is Boring
Silicon Valley's enthusiasm for technology and artificial intelligence (AI) has not translated into success for companies in the insurance industry. Insurtech companies, such as Lemonade and Root, have seen their stock prices remain stagnant. Additionally, global insurtech funding has decreased by 44% in 2023. The insurance industry is in need of innovation as premiums rise and coverage gaps persist. While some insurtech startups have found success, the sector as a whole struggles to meet investor demands for exponential growth. The industry is a challenging environment, and incumbents have the advantage of more data to price risks accurately. However, the rise of insurtech has pushed traditional insurers to adapt and invest in technology. Moving forward, the focus should be on technology and leveraging AI to improve insurance processes and generate more accurate risk estimates.
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