Galen Shaffer, Principal at Eos Ventures, sat down with McKinsey & Company to discuss why insurance remains one of the most compelling long-term investment opportunities in financial services, and how AI is reshaping the sector.
Speaking with McKinsey Partner Grier Tumas Dienstag, Galen explained that insurance’s inherent regulatory fragmentation, particularly the state-by-state licensing structure in the United States, creates fertile ground for specialist new entrants. She highlighted how the sector is “rich in the niche,” offering opportunities to build highly focused businesses in areas such as coverage for small businesses or life insurance for individuals with specific health conditions, spaces that larger incumbents have often overlooked.
On AI, Galen urged nuance, noting that the most impactful applications go well beyond generative AI and span robotic process automation, optical character recognition, and advanced machine learning, particularly in underwriting and claims where the right technique can meaningfully improve expense and loss ratios.
Galen also outlined what Eos looks for in founders: experienced operators with 15 to 25 years in the industry, deep carrier networks, and a track record of navigating the market’s cycles before making the leap into early-stage company building.
The conversation also touched on liquidity challenges facing the insurtech sector and the importance of portfolio companies building stronger relationships with private equity sponsors and moving towards profitability with more urgency.
Read the full interview: McKinsey & Company
