Often somone ask me what’s the insurtech and what’s difference with Fintech. Let’s look at the scenario with the beginning of this new year.
We can define the insurtech as a set of innovative business models, platforms that bring in a new customer experience by applying innovative technologies in the insurance world.
In which markets is advancing the insurtech?
Insurtech grows in an overbearing and we can see that the areas where we get the greatest results are in’ health and automotive. In particular we note that the most impressive investments by the venture capitals have occurred just in the startup and scalup that sell health insurance policies and precisely this market is growing with funding volumes 10 times higher than the Fintech market and should be seen in the evolution of an industry, one of the insurance companies, which applies worldwide five trillion dollars.
2017 will validate a number of trends in insurtech models, of which we report the three most important according to a report Burnmark:
- The blockchain will be used as the main technology to automate sign of policies and insurance contracts
- The IoT devices will be increasingly integrated and matched to the policies and the insurance insurtech platforms such as telemedical devices, wearables and even drone
- Micro-insurance: the consumer in micro-policies are taking place for usability, the savings that they offer and the new experience that accompanies them. Now apply to the world of insurance policies for cars, health insurance policies, etc ..
What is the insurtech trend in 2017?
By analyzing the trend of the last five years, we can safely say that 2017, also according to Mohan, will be the year of the boom in the ecosystem of startups insurtech. The global landscape of the insurance market is in fact projected to a continuous race towards the innovation, and to survive, companies will have to adapt to new business models emerging, accelerating its transformation transforming the customer experience, investing in startups and revolutionizing their business models.
When reporting the summary of a report published by CB Insights, a business angel Kyle Nakatsuji, director at American Family Ventures, (a well-known venture that invests in innovative startups and technologies), insurtech divides the market into three types according to the impact with which he faces the market and turns it:
- The Insurance 1.0 is the closest to the current reality model, namely that of incremental changes, that is the pattern in which there is an improvement in a gradual process, without any disruptive factor.
- The Insurance 2.0 instead expresses itself already disruptive in the short term, bringing significant innovation in processes and business models used by existing insurance companies.
- The Insurance 3.0 is instead completely disruptive, then creates discontinuity in templates and processes especially in the long term, applies to risk management in the era of commercial space travel, the modification of human genetics, more boost to artificial intelligence to all those areas of risk insurance that today are only frontier markets for pioneer.
The data that we analyzed lead us to describe a strong upward trend. According to a report by CB Insights, in the first quarter of 2016, were invested 650 million dollars in 47 startups insurtech, of which about 60% of these investments occurred in the US in the second half instead startups in the world of ‘insurtech they have raised more than a billion dollars.
Such as startup and scalup follow more closely in 2017?
In this ecosystem that is growing every day and that brings to market on a daily basis new startup insurtech scene, we analyze 5 scalup and startup to be kept under observation for disruptive business models that have introduced and for growth that are having or how they are climbing at world wide level:
- League – is a Canadian startup based in Toronto, who recently made a Series A round of 25 million dollars. Provides via an mobile app benefits to its customers in the form of improved well-being of its employees by providing insurance and services in the wellness as advice about nutrition, subscriptions to gyms, yoga classes, etc … Everything is done by correlating the platform providers the service with those who will benefit from it.
- Collective Health – It is a startup insurtech born in 2013 in the United States that seeks to provide health insurance policies, creating a better customer experience. Assist companies in the United States by providing incentives to take better care of their employees with a comprehensive health policy all managed through an innovative technological platform.
- Trov – www.trov.com – startup founded in 2012 in California that has collected a total of over 46 million dollars and has not yet been launched. It will be operational this year and chose Australia as the first market. Its disruptive business model provides ability to attain any object via a mobile app
- Bima – Swedish scaleup launched in 2010, sells micro policies in emerging markets can be purchased directly from the mobile device in less than 3 minutes. In a few years already they reached over 24 million insured customers in Africa, Asia and South America. The expansion was made possible thanks to a highly scalable model based on B2B agreements shaking with insurance companies and local telephone companies using a network of agents that today has over 3,500 members
- Oscar – It is a startup launched in 2013 in the United States that sells health insurance policies using new technologies Mobile, a new customer experience for the use and enjoyment of health insurance policies. With an advanced technical team and experienced consultants health care, Oscar examined the current state of the US health care system, it has entered so disruptive in the experience of the consumer used to and tired of the old insurance models.
- Clark was the first digital insurance broker in Europe and was born in Germany. The scaleup sells insurance products of more than 160 European companies by facilitating its users to find the best product for their needs thanks to a innvativa artificial intelligence platform owner
- N26 – It is a Fintech Germanstartup who was able to obtain a license to operate as a bank in Europe. It ‘the first startup Fintech to have achieved such wide license from the Federal Financial Supervisory Authority. He just picked up a Series B investment of $ 40 million which, together with those previously collected the door to a total funding of 50 million dollars. And it entered the insurtech market thanks to a recent agreement with Allianz through which can operate in the insurance world. Among its main business angels remind one of Paypal founders Peter Thiel.
We will see then what can we expect this new year whose expectations for ventures, insurance and startups living insurtech the ecosystem are very high.
Even yours truly is going to leave with a valuable team consisting of industry veterans with a new initiative in the field insurtech in the heart of the European Fintech, in London soon …… maybe hear of this new startups.