Even though Insurtech has been developing for a few years now, its biggest growth took place only last year, in 2021. We asked our expert, Lorenzo Chiavarini, what the latest trends in Insurtech are and here is what we discovered.
Insurtech in its essence is the intersection between the industries of insurance and technology. It evolved a few years after Fintech, around 2015-2016, as an answer to the growing need for more tech-based solutions to the previously heavily manual insurance processes. This includes both providing new technological tools for insurance companies, as well as offering better insurance products for tech-driven companies.
The increased growth in the Insurtech field has caused growth of Insurtech in 2021, a number of exciting trends has emerged in this field:
1. Climate risk – reaching net zero goal
Insurance industry, being one of the biggest asset managers in the world, can enable the transition to more eco-friendly alternatives by shifting their investments to e.g. solar panels or green power plants. Moreover, insurance companies need to adjust their policies, so that they cover damages related to climate change, which are currently on a rise worldwide.
2. The Insurance Protection Gap
Another interesting aspect is the growing understanding of the insurance protection gap. This term refers to the difference between the amount of insurance protection that is needed to be truly economically beneficial for the society and the actual insurance coverage that is in place. Unfortunately, as of now, to address that gap we, as a society, would need to spend a lot more on insurance than we currently are.
3. Promoting prevention
Traditional insurance doesn’t encourage you to change your behaviour in any way, accidents just happen, right? Insurtech introduces an exciting opportunity to change that and incentivise you to try avoiding the damage before it actually happens. The internet of things enables that by, e.g. providing you with sensors that will warn you in case there is a water leakage starting in your apartment. Knowing that, you will be able to take action in time to prevent it.
There is a lot more to learn from our expert, Lorenzo Chiavarini, B2B Research Lead at Dealroom. In order to fully appreciate the exciting opportunities that Insurtech introduces, check out our new course. You will also learn, among many others, about the current Crypto market cap and investment tendencies in Fintech.
The course is free for the next two weeks, but why wait until the last minute?