With the next installment of Insurtech Boston right around the corner, Agency Checklists invited fellow sponsors of the Spring Jam ’18 to contribute to this week’s Insurtech Edition as a way in which to introduce themselves to our community.
The Global Insurance Accelerator is one of leading mentor-driven business accelerators fostering innovation in the insurance industry. Led by Brian Hemesath, Managing Director of the Global Insurance Accelerator, the GIA differentiates itself from other mentor-based programs in that insurance carriers are the investors and insurance executives are the mentors. As a result, the GIA focuses on finding and supporting those start-ups who are building solutions for the insurance industry.
GIA’s decision to attend this week’s Insurtech Boston provided Agency Checklists with the perfect opportunity to query it about its unique approach to investing in innovation, what it offers start-ups, as well as what it hopes to accomplish while here in Boston.
Could you introduce us to the Global Insurance Accelerator? How did the GIA get its start and what does it aim to do?
Launched in 2014, the Global Insurance Accelerator (GIA) fosters innovation in and for the insurance industry via a mentor-driven, 100-day program. The GIA supports an annual cohort by providing each company $40K of seed money in exchange for six percent equity. During the program, cohort members get insurance-specific mentoring via 1:1 and group meetings with industry executives, as well as basic business infrastructure assistance, coaching on garnering investments, and product-specific insights into strategies for increasing applicability to and feasibility for the insurance industry. The GIA extended network includes insurance company investors, startups and mentors from across the global business and insurance communities.
Where is the Accelerator located?
The GIA is located in one of the largest insurance hubs in the U.S., Des Moines, Iowa.
Could you give us a little bit of your background in insurance and how you came to the GIA?
As with many people I have met in this industry, I don’t have a background in insurance. Having built several technology companies in the past, I come at this from a technology and startup perspective, and am about four years into my crash course in insurance. One of the things that has made a significant difference in my learning experience, and the growth of the GIA as well, is the participation and guidance of some really stellar insurance industry mentors. Our board chair, Jeff Russell of Delta Dental, is a great example of the quality and experience of the GIA’s mentors, and he has been a tremendous leader for our organization.
What is your position with the GIA?
I am the managing director of the Global Insurance Accelerator.
When did the GIA officially launch?
The GIA launched in 2014, and graduated its first cohort in April of 2015.
What are the benefits of joining or working with the GIA?
For startups, the biggest benefit is the ability to fine tune product-market fit and have the opportunity to become immersed in a robust insurance community that is actively innovating. With more than 150 industry mentors and access to an extended network of insurance professionals through our 14 insurance company board members, there really is no better place for a startup with a solution specific to insurance to mature and build momentum.
Why did you decide to come to Insurtech Boston?
Ask Kodiak has done a great job of building InsurTech Boston into a forum for networking and an ongoing discussion around insurance industry innovation in the Northeast. We are happy to support the InsurTech Boston community, events like this one, and conversations about industry transformation wherever they are happening.
What do you see as the greatest disruptive Insurtech for the insurance space?
[pullquote]Rather than identifying any one technology or startup, I think it is more important to focus on the way the interest and investment in InsurTech is changing the insurance landscape for the better. [/pullquote]
Rather than identifying any one technology or startup, I think it is more important to focus on the way the interest and investment in InsurTech is changing the insurance landscape for the better. Today, insurance companies are setting aside dedicated innovation resources rather than ripping staff and money out of an existing IT infrastructure. Incumbent vendors are stepping up to the plate with better speed-to-market and incorporation of emerging technologies into traditional products. And, InsurTech startups are engaging in programs like the one offered by the GIA in order to gain important industry knowledge before going straight into a pilot or proof-of-concept (PoC). The rising tide really does lift all boats.
What about your thoughts about insurance regulation and insurtech and innovation?
Innovation in the insurance space, whether it is technology-driven, process-driven, or otherwise, needs to have the solid backing of the regulatory community. That kind of regulatory support and foundation provides a much needed sanity check for startups who may not come from the industry and who might be tempted to push the envelope a bit too far. Many people view insurance as too strictly regulated an environment and one that naturally stymies innovation, but insurance regulation doesn’t have to be a roadblock to innovation. Instead, it can ensure innovation is incorporated into the industry in a way that is responsible and which mitigates any unnecessary risk.
What are you most excited and/or worried about with regards to the state of the insurance industry right now?
In the current environment it is easy to be both excited and worried. There is so much activity in the insurance market right now, I think it can be difficult for insurance companies to filter out the noise or to figure out how to move from the sidelines onto the playing field. Sometimes too much choice can actually inhibit decision-making, and with 1200-1500 InsurTech startups and a growing number of innovation labs, studios, and accelerators being tracked at any given time, effectively evaluating options for engagement is no small task.
How could interested Insurtechs or related startups get in touch with the Global Insurance Accelerator?
InsurTech startups are always encouraged to apply for inclusion in the GIA’s annual cohort. The application process this year will conclude with announcement of our 2019 cohort in January.
While the GIA’s 100-day program is designed for early stage startups, that doesn’t mean there is no opportunity for companies that already have some traction in the marketplace. Each year, through an application process which typically opens in June, the GIA brings in approximately 15 InsurTech startups for a concentrated InsurTech Week in mid to late October. The companies who participate in InsurTech Week are offered no travel assistance or housing stipend, and the GIA takes no equity and provides no seed money. More details on the annual cohort program or InsurTech Week are available at www.globalinsuranceaccelerator.com. Or, find the GIA at one of the many upcoming industry events.
I will be attending and presenting at the NAIC’s Insurance Summit in Kansas City, June 18-20, and, the GIA’s Program Director, Megan Brandt, will be attending InsurTech Boston on June 7.
We always welcome conversations with new InsurTech startups and industry influencers. Connect with us onsite, or via email at brian@globalinsuranceaccelerator.com or megan@globalinsuranceaccelerator.com.
