London partner Andrea Best penned an article for the May 14, 2019, edition of Global [Re]Insurance on assisting the parties to insurtech ventures. She notes one common theme that appears in all successful efforts: early and continuous cooperation between the parties—both the insurers and the tech companies, as well as their lawyers and actuaries.
Most importantly, she says, “the parties must trust each other, agree on a common goal, and work together in a collaborative fashion, involving their lawyers and actuaries from an early stage in order to ensure success. If there are legal obstacles to implementing a new idea, it is best if these are identified as soon as possible, while there is still space to change things without incurring a significant cost. The legal and regulatory burden for bringing the product to market successfully should be shared by the parties to the extent this is practical.”
Andrea stresses that most insurtech ventures are an iterative process. “The idea is likely to change, perhaps with great frequency, as the program crystalizes. Flexibility is important, but so is keeping in mind that every time your idea changes, the legal advice may change, too. Don’t forget to call your lawyers before you hit the button for the final launch.”Read “How do I know if this is the next Lemonade … or just a lemon?”