Has Insurance Become Too On-Demand?

Many new entrepreneurs or those in the gig economy consider on-demand insurance the greatest invention since sliced bread. And insurtech companies couldn’t be happier.

Here’s why: In the wake of society relying more on smartphones, apps or other popular technologies, consumers now expect buying insurance to involve a similar user experience as when shopping on Amazon.

Thus, on-demand insurance was born when technology and insurance merged.

Consumers can shop and purchase policies online without the help of an insurance broker or agent. For example, with only a few clicks on their smartphone, a new founder can acquire a general liability or an errors and omissions policy lickety-split.

Many insurtechs provide on-demand insurance in some form, like Thimble with its short-term policies for freelancers. Others, like Pie Insurance, narrow the scope by focusing on pay-as-you-go workers’ compensation coverage, while Metromile provides pay-as-you-go auto insurance.