Garrett Droege is shaking things up in the insurance world. As the senior vice president and head of innovation at IMA Financial Group, he is pushing the industry to adapt to new technologies like blockchain and artificial intelligence. Droege is not just waiting for regulations to catch up; he is actively selling innovative insurance products and encouraging others to follow suit.
Over the last 15 years, Droege has turned skepticism into opportunity. He has created insurance solutions for industries that barely existed two decades ago. His work often involves educating underwriters about emerging technologies and their unique risks. In the early days of blockchain, he found himself explaining the technology and its implications to those unfamiliar with it.
Recently, IMA partnered with CoinDesk and Chainproof to launch a new staking insurance product. This product covers protocols where users earn rewards by locking up their digital assets. Droege emphasizes that this area presents risks that are unlike anything else in the insurance industry.
Designing the product was just the beginning. Droege had to ensure that underwriters could understand and assess the risks involved. He is committed to developing new insurance products that fit the needs of these modern risks.
Droege is now applying this same approach to artificial intelligence. With tools like ChatGPT, the risks remain uncertain, making it difficult to set prices. The lack of historical loss data complicates matters further. Droege believes that strong communication is key in helping brokers and risk managers explain these risks to underwriters.
In a field that often leans on traditional methods, Droege is advocating for innovation. He has noticed that many startups underestimate the challenges of the insurance ecosystem. He stresses that understanding the industry’s outdated practices is crucial for any new technology to succeed.
His role involves being both an innovator and a translator. He collaborates with tech-savvy clients to create tailored policies and then presents these risks to underwriters. Droege sees himself as a broker who must convince both sides of the equation.
Despite the challenges, he believes in the potential for innovation. Trust is essential when introducing new products, as it helps overcome discomfort associated with change. Droege is committed to fostering this trust within his team and with clients.
He is also questioning traditional insurance practices, such as the standard 12-month contracts. For example, he argues that insurance for drones should only be active when the drone is in use. Droege envisions a future where insurance is more flexible and based on actual usage.
Ultimately, Droege is betting on open conversations and the willingness to adapt. He believes that the future of insurance lies in products that can adjust to the needs of modern technology, even if the data is still uncertain. Through his efforts, he aims to lead the insurance industry into a new era of innovation and understanding.