21 signs your traditional insurance business model is a gamble

A large proportion of your gross written premium (GWP) is for manually assessed risks
You cannot analyse claims costs against policies written for each rating factor.
You can’t measure quickly whether a change in your sales offering has had a positive or negative impact on your bottom line.
There is an excessive concentration of risk in certain areas, such as too many properties in a flood zone, or an uneven spread of client demographics. Or worse, your systems do not alert you of risky over-exposure
When it comes to calculating reserves, your actuaries rely on external data rather than your actual policies and claims.
Your processing rate for claims is slow, even though quick intervention and processing is critical to stemming losses and reducing expenses.
Your sales channel is reliant on an aging agent network and personal contacts.
The average age of your customers is increasing, which means you are not winning business from younger customers.
Your customers can’t transact with all parts of your business via their mobile phone and laptop, which means your platform functionality is behind the times.
Paper forms, documents and other analogue processes are still an integral part of your operations.
You are not achieving above-market growth (and can’t pinpoint the last time you were).
Staff are spending the bulk of their day in meetings (that aren’t necessarily essential or the most valuable use of their time).
There is a lack of diversity in your workforce, particularly at the senior level.
Either you don’t have an active environmental, social and governance (ESG) policy, or you choose to ignore it.
A number of key staff at your company have been in the same role for 10 years.
You have trouble attracting and retaining top digital talent who can modernise your business.
You don’t have a clear focus on comparative advantage in talent sourcing models, which means there’s no understanding of what expertise to bring in-house and what to outsource, leading to labour and cost inefficiencies.
You couldn’t name five recent initiatives that put you ahead of the market and gave you a valuable, competitive edge.
When tasked with driving growth, your strategy team simply assess the competitive landscape and emulate other company’s successes.
You rarely inspect the ‘jobs being done’ in your business and assess whether or not they are needed or could be automated for now (or forever).
You don’t know who Lemonade is.


We are Axe, a leading insurance solution provider helping our customers shift to meet their customers’ needs. We’ve built our reputation on having the most innovative and adaptable software in the market. So, if you’re wanting to change the rules, we should talk.