Technology has suddenly made insurance the hot new market for startups to get involved in. It makes sense, after all, the insurance industry has always revolved around assessing risk and never has it be easier to accurately assess risk than with big data and artificial intelligence. Naturally, a lot of insurtech startups are looking to get a piece of the insurance pie, but what about major tech companies?
As it turns out, many tech companies are considering getting involved in the insurance industry. Amazon has spoken about it before, but Google looks ready to put some money behind their sound bites.
In fact, the search-engine giant recently announced that they had become a minority investor in Applied Systems, a growing insurtech company. Furthermore, Google seems to want to keep the ball rolling from there by ramping up their investments in the space.
Jesse Wedler, a principal with CapitalG, the growth equity investment fund of Google’s parent Alphabet, spoke with the Insurance Journal about this very topic. According to Wedler, “We really like the market…We will definitely be looking for additional investments in the insurance technology space.”.
Obviously, all we can do is speculate. However, CapitalG already investing in companies like Applied Systems does make it seem as though Google is willing to put some serious money into exploring the insurance space.
It is worth noting that Google is not the only major technology company looking into the insurance space. While Google may be actively investing, Amazon has already run experiments with car insurance, and will likely become more involved in the space eventually.
The reality is that new technology is transforming the insurance space, and with that transformation we will see a lot of new players enter the market. That’s a great thing for consumers. It will certainly be interesting to see what new and innovative ideas Google brings to the insurance space.