The emergence of insurtech technologies has made it possible to draw a new scenario in the insurance panorama, thanks to the advances in digitising and simplification that they propose. With the creation of increasingly personalised products, customers can have a better experience when they buy these services, and this is one of the reasons for its growth around the world.
Global investment in insurtech has doubled in recent years, going from more than $1.6 billion in 2017 to nearly $3.2 billion in 2018, according to data from the consultancy Fintech Global.
If we analyse the increase in investment by regions, we can see that North American transactions occupy half of the market, but its market share has dropped from 58% in 2014 to 49.2% in 2018. In Asia there was also a subtle reduction, from 15.5% to 13.8%. In contrast, and analysing the same period, investment has been growing in Europe, going from 23% in 2014 to 31% in 2018. In the rest of the world, the change was 4.3% to 5.8%.
However, North America continues to be the most buoyant insurtech market, something which is confirmed by the list with the twenty most important cities for technologies applied to insurance, prepared by the consulting firm Venture Scanner. Twelve US cities and one from Canada are in this ranking.
In Europe, London comes top of the list, but Paris, Madrid and Berlin also feature. The capital of the United Kingdom is one of the most important hubs for the insurtech community, and this is proven by the amount of initiatives being undertaken. This city, for example, will host the largest gathering in Europe on the subject in 2020.
Asia is another region to look towards. Two cities in India and one in Singapore are on the Venture Scanner list, a sign that little by little this technology is gaining a presence on the continent.
In Latin America the sector is also starting to gather pace and, according to Finnovating’s company maps, there are estimated to be between five and ten insurtech ventures per country in Colombia, Mexico and Chile.
The EY Global Insurance Trends 2018 report points out that some of the values for those who invest in insurtech include improvements in customer experience, because access to insurance products and services is easier, and there is also a cost reduction due to there being more automation. That is why investing in this innovation is an attractive proposal that will grow as its market grows.
One of the goals of insurtech is to stimulate innovation throughout the insurance industry. For this reason MAPFRE, in addition to its presence on all five continents, is committed to creating new mechanisms within insurance with platforms like insur_space. The expansion of this technology will continue to increase as the platforms and alliances between startups, which generate synergies and impact around the world, grow and prosper.