How is it that of all industries out there, insurance is missing its opportunity to be seen as a partner during this economic **** storm and capitalize on the moment? Ill tell you how. Because they are focused on insurance rather than assurance. Bravo to Hyundai for introducing their Assurance Program. However, they might have missed the boat a bit by offering to take the car back if you lose your job. That’s just what people want when they lose their job is to “give back” (translated – “lose”) their car at the same time. So other car companies capitalized on Hyundai’s Assurance program (and Hyundai has since jumped on board, too) by offering to pay for car owners’ car payments for X number of months if they lose their job. Now we’re talking.  

The big insight in these new offerings is assurance. Consumers have plenty of INSURANCE but during tough times they NEED ASSURANCE. There is a huge population of soon-to-be retirees that just lost 40% of their savings. A broader set of consumers just had a big gut check on how safe their money really is in banks, stocks, bonds, etc. Why haven’t insurance companies developed an offering to ASSURE their consumers that their savings are safe? My car is safe because of insurance. My house is safe because of insurance. My death is safe because of insurance. But the lowest common denominator — money — is not safe (or should I say, as safe as the FDIC can insure). Seems like a pretty good time to develop an offering that keeps people’s savings safe.  

Think about it. Most people don’t have nearly as much money saved as their home’s present/future value, yet insurance companies are happy to insure homes but not money? Sure, it seems complicated to insure money. Here is what I say to that – FIGURE IT OUT!  

The first insurance company to come out with an assurance offering is going to be seen a completely new light. They will have disrupted the antiquated industry. Furthermore, they will have shown they care about their consumer. Fathom that!  Truth is, most insurance company executives do care. But two big issues will stand in their way; one, they will never get  “out of the jar” because they are too focused on the features and benefits of their current products; second, most see their companies as providers of insurance, not assurance.  

After writing this I think I just convinced myself to launch an Assurance Company.  Anybody want in?

Read More In: Innovation Discussion Financial Services Future Trends New Products, Services, and Business Models Disintermediation