Startups are continuing to evolve in an increasingly globalised context in which competitiveness is ever growing. For this reason, innovating and finding an attractive niche market is vital, and one of the best bets is insurtech.
According to data from Finnovating’s map of insurtech in Spain, almost 200 initiatives seeking to find innovative solutions have been created in the insurance sector. A large majority are based on eHealth, i.e. health integrated with new technologies, whilst others appear in such varied channels as distribution, customer service and products.
Part of the impetus for insurtech initiatives is thanks to improvements in connectivity and access to data that online technologies have provided. If data is handled efficiently, insurers can offer customised, unique solutions in an environment in which customers make decisions from an increasingly well-informed position.
According to the World InsurTech Report 2018, drawn up by Capgemini and Efma, these startups are already beginning to be influential within the insurance industry, partly because of their rapid responses to customers’ needs and also due to the creation of more ground-breaking business models.
Insurtech platforms identified very specific insurable scenarios and this allows them to design strategies ranging from communication to management. In addition, integrating technologies like blockchain and using drones and wearables allows the exchange of information to be more efficient and reliable, which helps insurers to better manage risks.
This translates into a joint project together with insurance companies, which play an important role in building better opportunities to accelerate growth in the sector. For example, MAPFRE sets aside more than €100 million per year for the development of insurance solutions that are committed to innovation through insur_space.
The platform Seguro Inquilino (Tenants’ Insurance) falls under this umbrella – designed by Clicksurance, it is aimed at people who live in rental properties. With the use of OCR recording technology, the state of a home at the time of handover and return is recorded, providing renters with much needed protection. Another of the startups that is part of this programme is Kovrr, which uses artificial intelligence to monitor the global activity of thousands of individual players and gangs in cyber-crime. Its role is to analyse risks and, in this way, to contribute to minimising threats for insurers.
Insurers and companies specialising in insurtech are on the path towards co-creating collaborative scenarios to redefine the technological landscape. Large corporations now have the opportunity to design products that go one step further, driven by the inventiveness of startups. The market is already changing, and opportunities for emerging enterprises have only just started to take off.