Watch this 26 minutes video and you will begin to understand how companies like State Farm are soon going to be lines in the history books. No amount of cutting or reorganization is going save State Farm.
https://youtu.be/LDOhFHJqKqI
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Lemonade is using facial software to determine how authentic and honest looking their customers appear when presenting a claim. If you look “right” your claim gets paid if not no pay. How could that be a problem?
how’s lemonade doing now? down 30% because they can’t price properly and losses doubled when bots pay claims in 2 seconds.
“They think they can just upend 100 years of industry and regulations? They’re the shiny new car and it’s luster will wane.”
Said Taxi Unions to Uber.
Said Blockbuster to Netflix.
Said Walmart to Amazon.
SF is still on top and in a similar place as Walmart, 20 years ago. 20 years from now SF may still have a presence but they will not be the “top dog”.
Wait til lemonade see loss ratios skyrocket. They think they can just upend 100 years of industry and regulations? Even google tried it and got out. They’re the shiny new car and it’s luster will wane.
Here they come, nail #1 in SF’s coffin.
https://www.forbes.com/sites/eyalbino/2018/10/22/state-farm-attack-ad-on-lemonade-backfires-setting-the-stage-in-battle-of-old-vs-new/#56c4b2b01eba
SF agency is the dingleberry you can’t cut off the hairs on your rear. Agents in San Francisco, for example, who have contracts that don’t require them to sell certain products...so their office runs bare minimum and they are making a nice pile of money to live on so why bother anymore? Bring on the lapse cancellations. It will be interesting watching SF try to figure out InsureTech. If the risk process doesn’t change then I don’t see how innovation will happen as fast as it needs to in order to compete.
I hear State Farm is going to start a tech company called "Round the Corner where Fudge is Made."
Blue Owl is a solid try. However, at the end of the day, everything will still have to go through the bureacracy and decision makers at the SF mothership. Having a new, fresh, and innovative approach and bolting it onto a bureaucratic, Fortune 50 campany won't work. State Farm will bastardized any innovation and ultimately default to what it knows. Hope I'm wrong, but the theory of Innovator's Dilemma suggests SF is doomed.
It’s all staring to make sense now with State Farm shifting to the “neighborhood of good” and giving back to your communities. I see the silver lining after watching the video and observing everything going on there. Take a look at BlueOwl, that’s the future of State Farm.
Whether its this startup or another InsurTech, State Farm is toast. They have way too many people, antiquated systems, and no vision for the future of insurance. State Farm spends more time and money trying to convince themselves that they are innovative than actually trying something new.
Not my view of the future I posted - but I agree with what the head of Lemonade says in the video - and yes State Farm’s assests are their liabilities in this new world - reality is sometimes difficult to deal with - sorry, becoming captain of your Titanic is not something I am interested in -
/We get it Lawrence451.....you’re not bullish on the future of State Farm. Maybe you should apply for a leadership position and right the ship with your view of the future of the industry./
I doubt Lawrence451 wants to strap himself to the mast of a sinking ship.
We get it Lawrence451.....you’re not bullish on the future of State Farm. Maybe you should apply for a leadership position and right the ship with your view of the future of the industry.