The homeowners insurance policy of the future may look more like a collection of coverage options to meet each policyholder’s specific needs rather than one singular solution.
At least, that’s the direction envisioned by Arik Yelovitch, chief technology officer and co-founder of Adaptive Insurance. He discussed parametric products and climate-related coverage gaps during a Carrier Management interview at this year’s Insurtech Connect conference in Las Vegas.
“I’m not here to predict the future, but I think the days of selling one insurance policy that covers everything are numbered,” he said.
Yelovitch added that he expects traditional homeowners insurance to continue providing essential protection, with specialized insurers offering supplemental products. He compared the approach to consumers subscribing to multiple streaming services rather than relying on one provider for everything they want to watch on television.
For Adaptive, which began with parametric power outage coverage and has expanded its focus to flood, wind, hail and other specialty exposures, he sees opportunity in filling those gaps rather than attempting to replace a standard homeowners policy.
“With Adaptive, we...