Ask HN: Why isn't there an insurance buying platform?
Why something analogous to uber or airbnb exist for insurance? Is it just an industry that hasn't been disrupted yet or is it a matter of regulations and other barriers?
See http://www.theverge.com/2016/2/23/11097642/google-shuts-down....
Insurance companies won't like it because it would be bad for them for something like this to exist at a consumer level. And consumers won't use it because they would need some companies there to participate. So I'd either factor in starting an insurance company as well (to sell on your market) or do P2P insurance, which would be very interesting. Let me know if you go the latter route, I might be able to help out.
Insurance is the most profitable industry out there, selling a mostly commodity product. It's definitely a very ripe industry for disruption.
And to some extent there are marketplaces. They're called independent insurance agents. The problem is Agents cost a lot versus direct to consumer marketing.
Could you build and automated agency, possibly but you have a lot of hand holding people want.
Some of the problems at the carrier level:
-large players that are heavily invested in technology.
-Each state is different and regulated separately.
-Fraud, Fraud, Fraud
-Complex legal contracts that require lawyers and compliance people.
-acquiring customers is expensive and low margins leave very little to disrupt.
-it takes years to get enough underwriting data to get it right.
- same with investing the money.
-federal regulations for integrating with medicare, terrorism database - other integration's: tpa's, motor vehicle, claims data, third party adjusters, e-billing, banks, auto rental places, window glass shops, supplier auditing(did we pay an appropriate price.
- plus for homeowners the better you sell in an area and lower your marketing costs the more concentrated your risk. hello hurricanes...