Many of the discussions I have had with seasoned professionals about InsTech/InsurTech startups often include the question of 'how are they addressing the regulatory burden?'
Whilst I would support the sentiment that insurance is not the most complex transaction, the reality is that regulators the world over work hard to ensure customers are treated fairly. Everyone in (Re)Insurance is acutely aware of the burden that compliance places on them, and also of the cost of non-compliance.
I would argue that it is important to focus on doing what you know well, and if you want to expand and diversify, make damn sure you've got people who understand that new product/market/regulatory-system inside and out.
One could look back to what almost bought down AIG a few years ago, and notice that it wasn't how they ran their insurance business that caused the problems...
Zenefits (...), which makes software for businesses to automate their human-resources and health-insurance processes, allegedly let health-insurance brokers use a software program that made it appear as though they had completed a mandatory online course required of them in order to obtain a license, according to BuzzFeed. The company’s former media darling C.E.O. Parker Conrad, who oversaw Zenefits’s meteoric rise to a $4.5 billion valuation, resigned earlier this week as the severity of the company’s compliance issues became clear. “The fact is that many of our internal processes, controls, and actions around compliance have been inadequate, and some decisions have just been plain wrong,” Zenefits’s new C.E.O. David Sacks said in a memo to staff at the time. “In order for us to move forward as a company, we cannot seek to hide or downplay the problem.”