By Shubham Bapna (Contributing Reporter)
The insurance industry has been the slowest mover in terms of changes in technological advances and adoption of new techniques to cater to millennials.
With the insurance companies finally embracing that they can’t escape the change, various adoptions and acquisitions are being played out around the world. VCs have started pouring in money in insurtech startups which provide customised, scalable and products for younger generations.
Insurtech nowadays are focusing on underwriting, claims and insurance buying process. But nobody is focusing on actuarial and technical aspects when it comes to medical and death claims. When it comes to adoption of insurance products for the young is at its lowest ebb in decades. Insurance products are now complex, and no insurance company is taking any initiative to capture the HENRY crowd – High Earning Not Rich Yet.
That’s where these insurtechs come into the picture and take away small segments from the incumbents and make a successful, technology-oriented business around it.
VCs have started pouring money in insurtech startups which provide customised, scalable products for younger generations.
Looking from a bird’s eye view, a lot of fintech companies have started to work in sync to make the best of partnerships. In India, a new type of insurance has been given to all the riders of the Ola cab service, which is the Rival of Uber in India. Even website insurance is getting popular nowadays. Meanwhile in UK, challenger banks such as Revolut are partnering up with insurtechs to have an add-on solution to their already loaded list of features. One of the insurtech, which is solely focusing on catering to the young generations, is called My Urban Jungle. Lighting fast deals and simple processes make it a go-to for younger clients.
Where do we see the Insurtech industry in next 2-3 years?
We predict that a lot of insurtech companies will fail in the next 2 years, and a ‘winning’ group of 20-30 across Europe and the rest of the world will come through.
What type of Insurtech companies survive?
The main problem with traditional insurance companies is that it’s lacking good technology. Use of in-house tech stacks to solve problems in an easy and scalable way – with no blockchain or complex AI can help the customers to buy the policies by comparing with other providers in just minutes.
It’ll be interesting to watch how these insurtechs carve out the niche for themselves. The future of insurtech looks exciting.