Insurance is complex in nature. This complexity has created barriers for FinTech startups with limited resources. Till 2013, Insurance tech or InsurTech was not as developed as other parts of the FinTech segments. Since 2013, the insurance segment has been showing signs of taking off with respect to FinTech. Several incumbents are planning to disrupt the $4.5-trillion industry by leveraging technological capabilities. Use of disruptive technologies like big data, Internet of Things (IoT), mobility, social network and blockchain are gaining momentum and InsurTech firms are looking for a scope to capitalize it.
FinTech startups have already stormed into the banking Industry. Several investors indicate that the same trend might be replicated in the insurance industry. That is why global investors have invested more than 3 million in InsurTech startups in the last couple of years. Pure play insurance companies like AXA, AIG have also acknowledged the fact that a “surge of FinTech will happen in the insurance industry.” It seems that these companies believe in the model of “if you can’t beat them, join them.” Large insurance players have started their innovation labs and are running accelerators and incubators to identify startups which are building cutting-edge technology and probably integrate into their system.
Salient features of the report titled InsurTech – The Next Billion-Dollar Opportunity in FinTech:
The latest report from Let’s Talk Payments talks about IT spending in the insurance sector, and also answers these questions:
– What are the segments of the insurance industry and where is there scope for improvement?
– What are the key challenges faced by insurance companies in today’s world of digitalization?
– What are the segments targeted by InsurTech startups?
– How are InsurTech startups planning to use technologies like big data, Internet of Things (IoT), mobility and social networks?
– How can blockchain change the insurance landscape?
– How many investments have been made in InsurTech startups?
– How are the investors with whom InsurTech startups talk to for fundraising?
– Which are the big insurance houses that are proactively investing in startups?