Carpe Data CEO Max Drucker was recently on a panel at InsureTech Connect 2018 on “Why Pilots Fail.” InsureTech Connect is the world’s largest InsureTech event, this year hosting over 6,000 attendees at the MGM Grand Las Vegas on October 2nd and 3rd.
Gregory Bailey (CEO of Denim) moderated the panel, which featured Mee-Jung Jang of Techstars and Ali Safavi of Plug and Play Tech Center, along with Carpe Data’s Max Drucker. The panel focused on four different reasons pilots fail: not having alignment between innovation teams and business teams, failing to outline clear measures of success, not having a defined timeframe, and having poor operational planning. The panelists also discussed how to engage large carriers as a startup, and what pitfalls to look out for when doing so.
Drucker told the audience that the best approach when engaging carriers is to… “[start] your pilot as if it’s going to be a long term contract… It’s about thinking about the pilot as if you’re going to operationalize it.” He referenced the pilot program used at Carpe Data for its Claims Activity Product, where a carrier begins with a two-year engagement, “but those first three months, you can get out of the agreement.”
Drucker also addressed the issue of properly outlining clear measures of success. He stated, “When you say ‘define success criteria,’ you’re really saying: What’s the ROI?” One of the most important aspects of communication with carriers, he went on to note, is being 100% explicit with what the expectation is from both sides.
Towards the close of the panel, Drucker acknowledged the big-picture importance of InsureTech startups engaging large carriers in the industry. “Look how many carriers are here,” he said, gesturing towards the audience. “People care. People are investing in innovation.”
Watch the full panel session here.