Insurtech

Business
modelS

This PDF File was purchased by Punyapon - [email protected]

Copyright The Business Model Analyst - https://businessmodelanalyst.com/ - Distribution prohibited
 SUPER GUIDE:
Insurtech
Business
modelS

BY DANIEL PEREIRA

This PDF File was purchased by Punyapon - [email protected]

Copyright The Business Model Analyst - https://businessmodelanalyst.com/ - Distribution prohibited
 © THE BUSINESS MODEL ANALYST

The Business Model Analyst is a website dedicated to

analyzing business model types, patterns, and innovations
using the business model canvas as its primary tool. The
site offers a wide variety of free and premium content,
including digital products such as PDF tools, presentations,
spreadsheets, ebooks & guides, and much more. Check it
out here.

Daniel Pereira
The Business Model
Analyst Ottawa, ON,
Canada
businessmodelanalyst.com

This PDF File was purchased by Punyapon - [email protected]

Copyright The Business Model Analyst - https://businessmodelanalyst.com/ - Distribution prohibited
 Copyright © 2022 Daniel Pereira
All rights reserved.
ISBN: 978-1-998892-09-9

This PDF File was purchased by Punyapon - [email protected]

Copyright The Business Model Analyst - https://businessmodelanalyst.com/ - Distribution prohibited
 TABLE OF CONTENTS
Introduction 8

What Is A Insurtech? 10

The History Of Insurtech 12

How Does Insurtech Work? 14

What Makes Insurtech Revolutionary? 16

Insurtech Today: Market Size, Landscape, Global Growth 18

Insurtech Business Models With Examples 20

Direct Insurers Or Tied Agents 20
Bima 20
Metromile 21
Trov 21
Root 21
Cuvva 22
Neos 22
Process-Improvement 22
Wefox 22
Rentablo 23
Getsafe 23
Marketplaces/Aggregators 23
Policybazaar 23
Coverhound 24
Insurify 24
Policygenius 24
Coverfox 24
This PDF File was purchased by Punyapon - [email protected]
Copyright The Business Model Analyst - https://businessmodelanalyst.com/ - Distribution prohibited
 Peer-To-Peer/Cashback 25
Friendsurance 25
Lemonade 25
Sales, Marketing, Engagement 26
Zywave 26
Welltok 26
Kasko 27
Covi-Analytics 27
Zipari 27

Benefits Of Insurtech 28
For The Consumer Perspective 28
For Insurance Providers Perspective 30

Insurtech Trends And Opportunities To Pay Attention To

When Building A Solution 32
Artificial Intelligence & Machine Learning 32
Real-Time Iot Data Changes Everything 33
Driving Efficiency With Robotic Process Automation (Rpa)
35
Consumer Experience Becomes A Competitive
Advantage 35
Enhanced Data Management & Security With Blockchain
36
Big Data Advanced Analytics 36
The Rise Of No-Code & Low-Code Platforms 37
Social Media Data 37
Drones 38

Criticism Of Insurtech 40

Conclusion 42

References 43

This PDF File was purchased by Punyapon - [email protected]

Copyright The Business Model Analyst - https://businessmodelanalyst.com/ - Distribution prohibited
 About The Author 44

This PDF File was purchased by Punyapon - [email protected]

Copyright The Business Model Analyst - https://businessmodelanalyst.com/ - Distribution prohibited
 INTRODUCTION
The insurance industry is one of the oldest financial
businesses that continue to grow to date. It is considered to
be an almost 300-year-old industry made up of companies
and firms that work on distributing risk.

The concept is very simple, one party takes the risk and gives
assurance of payment for an uncertain future event. Though
the world has advanced rapidly because of the technological
revolution, it seems that the revolution didn’t have much
influence in the insurance industry, until the emergence of
InsurTech.

The insurance providers are sometimes criticized for not

taking the actual risk to provide people the best customer
service, but to maximize their profit. However, the revolution
came into existence when InsurTech began to flourish and
challenged the old model of insurance business. Instead of
just maximizing the profit, InsurTech focused on providing the
best customer experience to the consumers with the help of
technology.

The continuously developing innovative ideas played a great

part in InsurTech becoming a game-changer in the insurance
industry. The inclusion of automation and customized pricing
attracted consumers to the market.

InsurTech startups continued to bring new unique ideas,

hence motivating the purchase of the policies at a very low
price and having the best customer experience.

Instead of relying on the old business model, InsurTech

introduced several business models, each serving a specific

This PDF File was purchased by Punyapon - [email protected]

Copyright The Business Model Analyst - https://businessmodelanalyst.com/ - Distribution prohibited
 purpose.

The inclusion of every class of people helped it to grow fast

enough that investors started to see the future of insurance in
InsurTech. They started investing money and resources in the
company, which made it possible to become a billion-dollar
industry in just a few years.

InsurTech takes care of both sides, the insurer and the

insured. With the continuous development of the InsurTech
trend, the industry is expected to flourish around the globe.

In this super guide, I will have a deeper look into InsurTech,

how it emerged, the way it works, what are the factors
working behind its growth, the business models, and recent
trends of InsurTech. Let's dive into the discussion!

This PDF File was purchased by Punyapon - [email protected]

Copyright The Business Model Analyst - https://businessmodelanalyst.com/ - Distribution prohibited
 WHAT IS A INSURTECH?

The word InsurTech emerged from two well-established

terms, Insurance and Technology. While Insurance is
considered as a contract or an assurance represented by a
policy, according to which an individual or entity gets financial
protection or compensation against losses from an insurance
company, Technology is something that is a combination of
techniques, skills, methods, and processes used to improve
our daily experience.

When this technology is used in the process of insurance, it is

termed as InsurTech. In general terms, InsurTech refers to the
new insurance technology that is motivated to ensure the
best user experience or customer experience. It's a kind of
technology that has been used in the insurance industry to
simplify policy management as well as increase competition.

To ensure the best user experience, InsurTech companies

developed techniques that made the process of purchasing
all types of insurance easier and more convenient way. From
consumer products to small business insurance, customers
can now buy any kind of insurance more easily.

They can now do some digging, compare policies and make

a purchase online when they want. There is no need to visit a
local agent physically. InsurTech is the technological
innovation that improved the creation, distribution, and
administration of the insurance business.

InsurTech can be an Application for smartphones and

wearables, a solution for automated policy management, or

This PDF File was purchased by Punyapon - [email protected]

Copyright The Business Model Analyst - https://businessmodelanalyst.com/ - Distribution prohibited
 an accident handling software.

Basically, it refers to any new technology that is introduced to

insurance companies to save costs or to simplify streamline
processes. While some of these techs are threatening the
existence of well-established insurers, most others are
focused on building ties with incumbents and enabling their
digitization.

This PDF File was purchased by Punyapon - [email protected]

Copyright The Business Model Analyst - https://businessmodelanalyst.com/ - Distribution prohibited
 THE HISTORY OF
INSURTECH

The process of the evolution of InsurTech has been gradual,

but the term has been in use for around a decade now.
InsurTech emerged around 2010 as a branch or side shoot of
a similar attempt in banking, known as ‘fintech’.

Where it refers to the integration of technology into the

financial system, in order to improve financial service
providers to consumers (Ex: Mobile Banking).

InsurTech has evolved around the insurance industry. It is

used to refer to any new technology like applications and
wearables, data science, and machine learning, which is
integrated with insurance companies to save costs or
streamline processes.

InsurTech has seen a rise in the industry at a slow pace. Some

of the few early players that introduced innovation in
insurance tech were CoverHound, the price-comparison
portal, Friendsurance, and Trov. AXA is among the first
companies that declared its intent to become a digital insurer,
and, back in 2014, it established a lab in Silicon Valley and
publicized its affiliation with Facebook. But the actual tide
came later in 2015, when the tech giant Google decided to
step in.

In March 2015, Google stepped into the motor insurance

comparison market. Nonetheless, the company left the
market just a year later, having little impact on the insurance

This PDF File was purchased by Punyapon - [email protected]

Copyright The Business Model Analyst - https://businessmodelanalyst.com/ - Distribution prohibited
 industry.

Once again, InsurTech saw a rise, during the Covid-19

pandemic. Yes, you are reading it right. Though the pandemic
has forced the world to make abrupt and far-reaching
changes, InsurTech has seen a renewed rise in investment.

Insurance Business published a Special Report: InsurTech

2020 in which it stated: “If the Covid-19 pandemic has
demonstrated anything, it’s that almost anything can be done
online, including insurance transactions [1].” While in 2011, it
saw a growth of USD $131 million in capital investments
thanks to the 45 investors who made it happen, eight years
later, in 2019, insurance global investment reached USD $5.5
billion.

The number of investors as well as firms calling themselves

insurance tech startups has also increased, growing a vast
system of interconnected services.

This PDF File was purchased by Punyapon - [email protected]

Copyright The Business Model Analyst - https://businessmodelanalyst.com/ - Distribution prohibited
 HOW DOES INSURTECH
WORK?

The thing is that InsurTech has no fixed boundary. InsurTech

startups use a variety of technological services and
processes, and their applications are constantly evolving.

So it’s hard to make an easy drawing on how InsurTech

actually works. But there is one thing in common among all
the service providers, ‘The Ultimate Goal’.

Most InsurTech startups focused on rivaling big, established

companies and growing their market share by providing the
best user experience to the customers.

In comparison to other industries and products, the traditional

insurance models are kind of outdated. In this fast-growing
world, people want things in a faster way. Working through
stacks of forms, filling them up and submitting them to an
agent sounds boring.

Today, people want to be able to purchase their insurance

with a tap of the finger. InsurTech startups understand this
demand and find solutions to it.

In traditional insurance models, customers are sorted into

large groups according to their risk category. However, these
large groups have their drawbacks: Some people in those
groups will end up paying more for them than they should.

InsurTech startups recognize this issue and find solutions to it

This PDF File was purchased by Punyapon - [email protected]

Copyright The Business Model Analyst - https://businessmodelanalyst.com/ - Distribution prohibited
 by creating smaller risk categories. Instead of using statistical
models, they use real data to offer their customers easier
solutions. The real data gathered from various sources makes
it easier for them to develop a more competitive pricing
strategy. Customers always prefer cheaper insurance
policies.

Generally, InsurTech streamlines and enhances backend

processes which improve the customer experience and also
serve the insurance company. How InsurTech streamlines the
backend process is a complicated question to answer. The
most common example is smartphone apps and chatbots.

The need for hiring a customer service employee to respond

to customers' concerns is decreasing, chatbots are taking
their place. Many of the customers’ concerns can be
answered by chatbots that automatically respond to inquiries
day and night, therefore, simplifying the customer service
experience as well as saving money for the company.

Smartphone apps are also used to improve customer

experience. Customers can easily get their work done
anytime with some tap of their finger. In addition to the best
customer experience, it also saves time and resources for
both customer and company.

To provide more intuitive and tailored services to the

individual, InsurTech also uses data from wearables and
social platforms.

This PDF File was purchased by Punyapon - [email protected]

Copyright The Business Model Analyst - https://businessmodelanalyst.com/ - Distribution prohibited
 WHAT MAKES INSURTECH
REVOLUTIONARY?

You may be thinking of InsurTech as something that brought

the insurance industry online with some apps and services.
This is partially true, but InsurTech doesn’t necessarily stop
there, it has impacted almost every part of the value chain
more intensely.

As discussed in the earlier section, InsurTech simplifies the

customer service experience as well as saves money for the
company.

Firstly, introducing an automated approach not only reduces

costs but also simplifies streamlined operations to provide
the best customer experience at a more competitive price.

Because of its highly automated policy management tangling

with other back-end processes, insurance firms now can offer
many law-priced premiums. And, as most of the business
procedures are done automatically, firms can now focus on
more user-friendly products.

Secondly, its ability to deliver more tailored service to the

customers based on their usage or value-added services
makes InsurTech a game-changer in the market. Data is a
major element for any business that is trying to bring more
user-focused services.

Insurance tech startups collect real data of their targeted

customers and use this data to get a more deep insight into

This PDF File was purchased by Punyapon - [email protected]

Copyright The Business Model Analyst - https://businessmodelanalyst.com/ - Distribution prohibited
 customer behavior.

Startups now analyze the data using powerful tools derived

from Data Science & Big data, using AI & machine learning
techniques to offer customized individual coverage.

Unlike traditional insurers, InsurTech focuses on inclusion. It

includes the underinsured consumers like small businesses,
pet owners, or disabled persons into the system.

Covering a large area by creating niche-based categories

and delivering more customized services, InsurTech makes
sure no one is left behind.

These kinds of modifications that InsurTech brought to the

insurance sector deserve a lot of applause, therefore, making
it a game-changer in the industry.

This PDF File was purchased by Punyapon - [email protected]

Copyright The Business Model Analyst - https://businessmodelanalyst.com/ - Distribution prohibited
 INSURTECH TODAY:
MARKET SIZE,
LANDSCAPE, GLOBAL
GROWTH

Since the Covid-19 pandemic, when many other industries fell

apart, InsurTech saw an uprising in their investment.

Today, it has become a USD $5.5 billion sub-industry, and it is

expected to grow significantly. By 2025, it is predicted to
become a USD $10.14 billion industry [2].

Because of its simplification of the claiming process, more

improved communication system with the customers, and its
capabilities to carry through tasks enabling automation are
the key driving factors working underneath its growth.

And, because it is developing day by day, the transaction

becomes easier with upgraded payment processing
technologies.

New innovative and unique solutions offered by insurance

tech startups to revamp the value chain are attracting
investors to take a chance.

In addition to that, the FinTech industry also recognizes the

necessity to integrate insurance-specific technologies into
their systems. Creating the pathway to the potential
This PDF File was purchased by Punyapon - [email protected]
Copyright The Business Model Analyst - https://businessmodelanalyst.com/ - Distribution prohibited
 collaboration between the two sectors, opening new doors to
brokers, vendors, analysts, and policyholders.

This PDF File was purchased by Punyapon - [email protected]

Copyright The Business Model Analyst - https://businessmodelanalyst.com/ - Distribution prohibited
 INSURTECH BUSINESS
MODELS WITH EXAMPLES

InsurTech companies are taking care of all lines of business.

The InsurTech industry consists of hundreds of market
participants that can be categorized into five basic InsurTech
business models.

Direct Insurers or Tied Agents

When insurance companies sell their policies directly to
customers, it is considered as Direct Insurers or Tied Agents.
It is a kind of InsurTech business model where no
intermediaries are needed. No intermediaries mean no need
to pay commission, hence allowing them to charge low
premiums to their customers.

The risks assumed by a direct insurer are re-insured by the

re-insurer. There are some well-known companies that use
this model. For example:

BIMA
BIMA is one of the leading providers of mobile-delivered
health and insurance, mostly covering the Asian region. The
company provides affordable, all-in-one, family health
services, covering insurance and underwriting to millions of
underserved low-income people of Africa and Asia, through
major mobile network operators.

According to their website, most of their customers “live on

This PDF File was purchased by Punyapon - [email protected]

Copyright The Business Model Analyst - https://businessmodelanalyst.com/ - Distribution prohibited
 less than USD $10 per day and are at high risk of illness or
injury, and 75% of [their] customers are accessing insurance
services for the very first time” [3]. The company offers a
range of affordable life insurance and health-related
micro-insurance products.

METROMILE
With an intention to minimize drivers overpaying for auto
insurance using the traditional auto insurance model,
Metromile offers their customers to pay based on their actual
driving habits. Their model is to “pay a low monthly rate, plus
a few cents for each mile you drive” [4].

They are one of the leading car insurance companies in the

U.S. Recognized by Forrester as a top insurance carrier in
user experience. The company offers Liability Coverage,
Vehicle Coverage, and also Medical Coverage. The company
has a diverse team that combines Silicon Valley’s best
technologists with veterans from Fortune 500 insurers and
financial service institutions.

TROV
Trōv is one of the leading insurance technology platforms,
enabling new ways for people to live, work, and move. Their
consumer app offers ‘micro-duration policies’ for individual
items that toggle on and off. The company has partnered with
insurance carriers, providing coverage for consumers
belonging to protected through the app.

ROOT
ROOT is another insurer in the car insurance category, which
provides individual offers to the customers based on their
driving. To get a car insurance quote from them, drivers have
to go through weeks of test-driving. In the meantime, they
gather and analyze data from drivers' smartphone sensors
and, after a few weeks, they offer a car insurance quote
based on the performance of the driver. The company covers

This PDF File was purchased by Punyapon - [email protected]

Copyright The Business Model Analyst - https://businessmodelanalyst.com/ - Distribution prohibited
 most of the U.S. states.

Cuvva
Cuvva entered into the market changing the whole concept
of car insurance policies, creating a genuine, useful,
innovative way to think about driving with a fair amount. It is
so flexible that it is designed to suit drivers' lifestyles from just
1 hour to rolling monthly cover. It offers temporary car or van
insurance, learner driver, and subscription insurance in the
app.

NEOS
NEOS is an UK-based life insurance company providing
insurance in smart home technology. NEOS works with
innovators and manufacturers to create high-quality,
easy-to-use products that are big on features and small on
price.

Process-improvement
Process-improvement InsurTech business model basically
refers to the Insurance Management solutions focusing on
convenient tracking and administration of users' insurance
policies and contracts in one place. Some of the companies
using this model are listed below:

Wefox
Wefox is a company created with an intention to minimize
complicated paperwork for purchasing and managing
insurance. It allows its users to handle all their insurance
policies from one place.

From updating Wefox Policies and personal details in

real-time to tracking their status. The Wefox app also ensures
that its users are getting the best rate across all their
insurance policies.

This PDF File was purchased by Punyapon - [email protected]

Copyright The Business Model Analyst - https://businessmodelanalyst.com/ - Distribution prohibited
 Rentablo
Rentablo is a German company that offers a 360° overview of
its entire finances. It allows their users to import all their
deposits and accounts directly from the bank. Rentablo
imports and manages all the insurance policies of their users
and keeps an eye on the insurance portfolio. It also helps its
customers by providing low-priced fee consulting to optimize
the insurance portfolio.

GetSafe
Getsafe is a company built on the process improvement
model to reinvent how people do insurance. It is focused on
building radically the best insurance experience with some
fingertips.

Using technology and machine learning, Getsafe provides

digital insurance products in almost all business lines. Their
app is available to customers 24/7 and 365 days a year,
allowing customers to file claims or change their real-time
coverage.

Marketplaces/Aggregators
Marketplaces/Aggregators InsurTech business model are
online platforms with a huge number of insurance products
and companies listed on their server, allowing users to
compare prices and terms. Some examples are, PolicyBazaar,
CoverHound, Insurify, PolicyGenius, and Coverfox.

PolicyBazaar
PolicyBazar is an Indian company that focuses on bringing
the Best Insurance for its customers, especially NRIs. It has a
broad range of insurance and investment products on its
website and app.

Using their website and app, users can easily compare

This PDF File was purchased by Punyapon - [email protected]

Copyright The Business Model Analyst - https://businessmodelanalyst.com/ - Distribution prohibited
 financial services from major insurance companies and pick
the best option for them. It has tied up with different
insurance providers, such as car insurance, health insurance,
life insurance, corporate insurance, and travel insurance as its
business partners.

CoverHound
CoverHound is established to bring fast, accurate, and
actionable quotes to its customers based on their specific
needs with competitive rates and coverages all in one place.
It has a list of the best options for both personal and business
insurance needs. It is one of the leading comparison
platforms, promising to get the best options for its customers.

Insurify
Insurify focuses on bringing personalized quotes to its
customers. Customers can compare discounts and payment
options for each insurance company in one place. It allows its
customers to get the policy they want and how they want it.
They can either buy online or schedule a call with an agent.

Policygenius
Policygenius is the online insurance marketplace with a
combination of cutting-edge technology with the expertise of
real licensed agents to help customers get the coverage they
need to protect their family, property, and finances with
confidence.

Like the other platforms I have talked about so far,

Policygenius also allows its customers to compare quotes
from various insurance companies, all in one place. In
addition to that, it offers a full-bodied database of articles on
different insurance products, helping people to walk through
the insurance purchasing process.

Coverfox
Coverfox is an IRDAI authorized insurance brokerage firm that

This PDF File was purchased by Punyapon - [email protected]

Copyright The Business Model Analyst - https://businessmodelanalyst.com/ - Distribution prohibited
 started its journey in 2013 with an aim to make insurance
simple. It also allows its users to compare the features and
prices of an insurance policy before purchasing any policy
and help them to buy the best policy.

Peer-to-Peer/Cashback
Peer-to-Peer/Cashback InsurTech business models allow
individuals to team up and club their premiums together to
protect themselves against the probable risk and commonly
derive benefits regarding premium proceeds. Some
examples of this kind of platform are Friendsurance, Guevara,
Lemonade, Uvamo, and insPeer.

Friendsurance
Friendsurance is a customer-centric digital insurance solution
that introduced the world’s first peer-to-peer insurance model
that rewards staying claims-free.

In 2017, they started to extend their services by introducing

Digital Bancassurance, which basically means the digitization
of insurance services for banks or insurance companies, for
example, Deutsche Bank and Allianz.

Lemonade
Lemonade Insurance Company offers homeowners, renters,
car, pet, and term life insurance powered by artificial
intelligence named ‘Maya’. It has replaced brokers and
bureaucracy with AI and machine learning, with an intention
to zero paperwork and instant everything.

Lemonade reverses the traditional insurance model and tries

to keep everything simple and transparent. They take a flat
fee, pay claims superfast, and give back what’s left.

This PDF File was purchased by Punyapon - [email protected]

Copyright The Business Model Analyst - https://businessmodelanalyst.com/ - Distribution prohibited
 Sales, Marketing, Engagement
Sales, Marketing, and Engagement InsurTech Business model
comprise technology insurance companies that offer
specialized tools to industry-related third parties, not only to
brokers and insurers, mainly in the form of API (Application
Programming Interface) or SaaS business model.

To improve certain parts of the value chain, improve user

experiences and more fair pricing, these process modifiers
are used. There are some big names such as Zywave,
Welltok, KASKO, CoVi Analytics, Zipari, Qover, Dynamis,
LifeDrip, and Sureify who are leading providers of this kind of
service.

Zywave
Zywave is a leading company that leads the insurance tech
industry. It fuels business growth for its partners with the most
expansive portfolio of cloud-based sales management, client
delivery, content, and analytics solutions.

It offers an all-in-one platform full of robust data and the most

comprehensive content library available. They empower their
partners to make smarter business decisions throughout the
entire customer lifecycle in service of greater health,
wellness, and safety.

Welltok
Welltok helps all types of organizations connect with people
on a personal level. It helps to improve people's physical,
mental, social & financial wellbeing.

They provide solutions that are a smart mix of a Consumer

Activation Platform, enriched data, a partner ecosystem, and
top-notch professional services to help health plans,
employers and health systems achieve their goals.

This PDF File was purchased by Punyapon - [email protected]

Copyright The Business Model Analyst - https://businessmodelanalyst.com/ - Distribution prohibited
 KASKO
KASKO helps insurers and their partners to design, launch,
and scale flexible insurance services that are cost-effective
and fast.

They help innovative and creative insurers to shape the

future of the insurance industry. By offering an API-powered
agile insurance product and distribution platform that
operates between digital customer touchpoints and legacy IT
systems KASKO is helping InsurTech startups grow fast.

CoVi-Analytics
CoVi-Analytics offers products and services that reduce the
Risk and Compliance effort, freeing their customers to focus
on their business.

They develop product solutions that connect operational

information with big data through technologies. Thus, helping
businesses to simplify their activities, automate operations,
and deliver new insights.

Zipari
Zipari is the only consumer experience technology company
exclusively focusing on health insurance. Zipari helps insurers
to move forward with their plan with a big lift in digital
engagement and self-service, building strong relationships,
empowering healthy actions, and running better operations –
all that with a lower cost. They use a CX platform that is built
to make health insurance better for everyone.

This PDF File was purchased by Punyapon - [email protected]

Copyright The Business Model Analyst - https://businessmodelanalyst.com/ - Distribution prohibited
 BENEFITS OF INSURTECH

The benefits of InsurTech can be seen from different

perspectives. In this guide, I will discuss the benefits from two
points of view:

● From Consumer Perspective.

● From Insurance Providers' Perspective.

For the Consumer Perspective

The whole idea of InsurTech is based on providing the best
customer experience. It has brought the customers'
satisfaction ahead of everything. Insurance Tech startups
prioritized the consumer in order to compete in the market.
There are multilevel benefits of InsurTech if we see it from
consumers' point of view.

Firstly, it has empowered the consumer. In InsurTech,

consumers are a part of the whole streamlined process. From
purchasing to claiming, in every process consumers are
playing part even consumers can even determine who sits on
the claims jury panel for a hearing.

Secondly, it paved the pathway for easy and convenient

access. Nowadays, almost everything has come into people's
hands, thanks to smartphone technology.

Today, most consumers do all of their work through their

smartphones. When it comes to insurance, expecting the
same mobile ease is quite normal.

This PDF File was purchased by Punyapon - [email protected]

Copyright The Business Model Analyst - https://businessmodelanalyst.com/ - Distribution prohibited
 But the old insurance model failed to meet this expectation,
thus leaving the path for InsurTech to emerge and grow.

InsurTech is so user-friendly that consumers can compare,

verify and purchase policies from their own smartphones.

No need for filling up boring papers, the blessing of the

automated processes made it easy for the customers to do all
this stuff just with a few taps of their finger. Both insurers and
consumers can check the status remotely, hence saving time
for both parties.

Thirdly, breaking down the larger categories into niche-based

smaller groups helped InsurTech to cover a whole range of
customers who are excluded from the old models.

This inclusion not only serves the goal of the insurer but also
helps consumers to get what they want. InsurTech enables
law-earning groups to take part in the industry, and it also
takes care of the situations that some people don't have to
overpay for their insurance.

InsurTech companies collect and analyze data from clients

that enables them to offer more upgraded and tailored
products to their customers.

And lastly, the increased security and customization provided

by InsurTech companies helped them to earn people’s trust.

Customers need to believe that they are 100% safe while

making any transaction online, maybe via an app. Companies
now set uncompromising anti-spamming and security policies
to earn the trust of consumers when they transact online.

This PDF File was purchased by Punyapon - [email protected]

Copyright The Business Model Analyst - https://businessmodelanalyst.com/ - Distribution prohibited
 For Insurance Providers
Perspective
As I mentioned earlier, InsurTech takes care of both the
insurer and the consumer. Using the InsurTech models',
Insurance companies can now maximize their profit while
giving the best customer experience to their consumers.

InsurTech saves the insurance sector time and money by

bringing its automation processes. Instead of going through
all the paperwork, insurers can now have all the information
organized in a server automatically. It creates opportunities
for them to utilize the time in focusing on their business.

Secondly, InsurTech also saves money by keeping the fraud

away from the border, specifically in the customer identity
verification process and anti-money laundering. There are
various technologies used by InsurTech companies to ensure
that, for example, fingerprint matching.

InsurTech is getting bigger day by day with the innovative and

unique ideas brought by the InsurTech startups. Newer
methods of insurance distribution such as peer-to-peer (P2P),
pay per mile, or micro-insurance policy all helped the startups
to get targeted consumers and contributed to the growth of
the insurance industry.

Last but not least, InsuTech enables insurance companies to

provide the best customer experience. Companies now can
directly sell policies to the customers. No mediator or agent is
needed, which allows them to offer cheaper policies to the
consumers. The 24/7 support system is made possible for the
chatbots that are answering the general queries of the
consumers.

This PDF File was purchased by Punyapon - [email protected]

Copyright The Business Model Analyst - https://businessmodelanalyst.com/ - Distribution prohibited
 The benefits of InsurTech are basically multi-shaped, as it can
be described from various points of view. The newer and
innovative ideas, such as microfinance, open new doors to
the customers and insurers to get benefits from.

This PDF File was purchased by Punyapon - [email protected]

Copyright The Business Model Analyst - https://businessmodelanalyst.com/ - Distribution prohibited
 INSURTECH TRENDS AND
OPPORTUNITIES TO PAY
ATTENTION TO WHEN
BUILDING A SOLUTION

In today's world, technologically advanced insurance

companies are gradually taking over the insurance industry.
Overthrowing the old insurance model or in many cases
assimilating with them brought new opportunities for
companies around the world.

We never know what trends are going to rule the market in

the future, but there are some tech trends that are showing
the best chance to lead the industry in the upcoming times. I
will discuss some of these trends in this section.

Artificial Intelligence &

Machine Learning
Artificial Intelligence (AI) and Machine Learning (ML) are
already leading the industries to the next level. Not only for
the insurance providers but AI & ML also marked their
footsteps in almost every field. Certainly, they will remain as a
top-notch InsurTech trend for the upcoming days. Why so?

This PDF File was purchased by Punyapon - [email protected]

Copyright The Business Model Analyst - https://businessmodelanalyst.com/ - Distribution prohibited
 Then I have to ask: why not? They are already impacting the
insurance industry in a whole new way. Things that were
never even imagined by the insurance providers are now
happening in seconds.

Thanks to this advanced technology, almost every step of the

streamlined process has now become more efficient.
Automating the underwriting processes, claim settlements,
fraud detection, everything becomes so easier by the
blessing of AI & ML.

Companies are now focusing on collecting real-time data,

analyzing the customer behavior, analyzing the risks with the
help of Artificial Intelligence to maximize the profit along with
providing the best customer experience to their consumers.

AI is now handling most of the back-end processes, helping

customers to solve problems with a 24/7 support system. One
prominent example of this is Chatbots, which changed the
way we looked at customer service providing.

These virtual assistants are helping consumers to make their

journey easy, guiding them whenever they need.

Real-time IoT data changes

everything
The use of IoT (The Internet of Things), the vast network of
physical objects or things embedded with software, sensors,
and other technologies, changed the data collection and
analyzing processes.

IoT connects devices and exchanges data between devices

and systems over the internet, opening new doors for
insurance companies to have a deeper understanding of their
This PDF File was purchased by Punyapon - [email protected]
Copyright The Business Model Analyst - https://businessmodelanalyst.com/ - Distribution prohibited
 customer. And if you know your customer, you know how to
serve them.

InsurTech companies can collect data from wearables, and

from their apps and websites to understand how and what
makes their customer interested.

Based on this real-time data, they can take actions that will
help them to mitigate risk and provide the best services to
their customers.

They can provide on-spot advice to their consumers helping

them purchase the policies, immediate suggestions on the
claiming process.

Telematics, the technology that is to monitor cars, trucks,

equipment, and other assets by using GPS technology that
allows the sending, receiving, and storing of telemetry data,
paved the pathway for Usage-Based Insurance (UBI). The UBI
is gaining popularity in the insurance market.

One such facility is already provided by ROOT, a car

insurance company that provides individual offers to the
customers based on their driving.

Such companies use telematics devices installed in the

vehicle and an app designed to collect and deliver the data.
Consumers are also getting attracted to this kind of InsurTech
model to get a personalized offer with a better price tailored
for them.

This PDF File was purchased by Punyapon - [email protected]

Copyright The Business Model Analyst - https://businessmodelanalyst.com/ - Distribution prohibited
 Driving efficiency with Robotic
Process Automation (RPA)
One of the most widely accepted tech trends in the InsurTech
industry is Robotic Process Automation (RPA). The process
gave a strong boost to the streamlined process of the
insurance industry.

From registration to claiming, everything can be done

automatically.

Thus, reducing the time and effort and also freeing

consumers from filling up a bunch of documents. Consumers
can now easily register, compare and also claim insurance
easily from an app or website.

Consumer experience becomes

a competitive advantage
The insurance industry is a competitive market like many
other industries. Here, keeping your customer is a great deal
than getting one.

Consumers will remain if a company can provide them with

the best customer experience. InsurTech companies
understand this very well and try to keep everything simple
and user-friendly.

Along with that, they spend a large amount of time

understanding their customers' needs, which enables them to
offer the best customer experience to their consumers.

This PDF File was purchased by Punyapon - [email protected]

Copyright The Business Model Analyst - https://businessmodelanalyst.com/ - Distribution prohibited
 Enhanced data management &
security with Blockchain
Blockchain, a shared, immutable ledger that eases the
process of recording transactions and tracking down assets
in a business network, has gained huge applause from its
users because of its strict security system.

The technology uses cryptographic algorithms for creating a

secure register of information that strictly prevents
unauthorized access, alteration, or extraction of data.

Many InsurTech companies are using this technology to

secure consumers' data, to make the processing of claims
faster, and to prevent any unexpected risk of fraud, which
improves the company's customer experience drastically and
allows them to offer IoT insurance products.

Big data advanced analytics

As I mentioned earlier, to offer your customers the best
services you need to know what they want, and what is the
best way to serve them.

This is an age of information. But there is no meaning if you

can’t make any sense of the information you have. Here
comes the Big Data technology. InsurTech companies are
using Big data advanced analytics to get an insight into their
customers.

This helps them to understand their customers' needs more

deeply, hence paving the way for building a stable consumer
relationship. Analyzing the big data makes it easier for
companies to understand customer habits and offer tailored

This PDF File was purchased by Punyapon - [email protected]

Copyright The Business Model Analyst - https://businessmodelanalyst.com/ - Distribution prohibited
 offers for individuals. It also enables companies to predict the
risk and take action to reduce them.

The rise of No-code & low-code

platforms
Today, creating digital products has become easy because of
the development of No-code and low-code software
development platforms.

To create a business application, one doesn’t need to be an

expert programmer with the knowledge of multiple
programming languages.

The basic understanding can be enough thanks to the

platforms like Outsystems, Mendix, Appian, Salesforce, and
Microsoft which provide tools for companies to develop,
deploy and manage sophisticated business applications.

These platforms help InsurTech companies to create a

front-end consumer experience and enter into the
customer-oriented era.

Social Media Data

Social media is not just a platform for entertainment
nowadays.

Many businesses are entirely built on social media. Usually,

business enterprises think of social media as a tool for
marketing strategies, called social media marketing. But
social media can play a greater role beyond just being a tool
for advertisement.

This PDF File was purchased by Punyapon - [email protected]

Copyright The Business Model Analyst - https://businessmodelanalyst.com/ - Distribution prohibited
 InsurTech companies use social media data to improve their
risk management strategies.

For example, the Dutch InsurTech startup Kroodle developed

a strategy to use social media for interacting with customers.
Consumers file claims, get quotes, and request other services
using their Facebook account.

InsurTech startups can also use social media for investigating

fraud. They can investigate the social media activity of
insureds to find out any possibilities of fraud very.

There are tools available that investigate claims throughout

the assessment process by examining social media activity.

Drones
The technological revolution has become a blessing for
InsurTech companies. Every day, there are newer
technologies used in innovative ways by insurance firms. One
such technology is Drones.

Many InsurTech startups now use drones during different

stages of the insurance lifecycle. The drone can be used to
collect data for calculating risk before offering a policy, it can
be used in preventive maintenance, and also assessing the
damage.

One such example is Farmers Insurance, which deployed

Kespry drone technology to enhance the customer
experience and increase safety.

These drones are utilized for roof inspections and other

assessments, and the data collected by those drones are
stored in their cloud for analysis. This is also a great example
of IoT and other technologies working together in the

This PDF File was purchased by Punyapon - [email protected]

Copyright The Business Model Analyst - https://businessmodelanalyst.com/ - Distribution prohibited
 InsurTech industry.

The InsurTech industry is evolving with the advancement of

new technologies. Newer trends are getting attention. The
startups always come with a unique idea to aid the industry's
growth.

Who knows what is waiting for us next!

This PDF File was purchased by Punyapon - [email protected]

Copyright The Business Model Analyst - https://businessmodelanalyst.com/ - Distribution prohibited
 CRITICISM OF INSURTECH

Though InsurTech has brought a revolutionary change in the

insurance industry, it has gained some criticism along with
applause.

First of many InsurTech companies collects data of their

consumers to understand potential risk and customer
behavior. It sounds great if we look at it from one side. But
there are some concerns about the privacy of the customers
along with the potential security threat.

Any data that has been collected by the companies can be

used against the customer if the data gets leaked.

Secondly, constant surveillance is not a comfortable thing.

Historically, people want freedom. If someone or something is
constantly surveilling, people may find themselves in an
uncomfortable situation.

Many InsuTech companies are just startups, trying to establish

themselves in the market. But there are bigger fish
dominating the ocean, and competing with them is not easier.
Many startups end up selling their platforms and innovative
ideas to giant companies.

Apart from all of these, InsurTech has been also criticized for
taking place the job of many people. Hence, many works are
now can be done with the help of automation, people are
getting fewer opportunities to work.

However, these criticisms can be applicable for other

This PDF File was purchased by Punyapon - [email protected]

Copyright The Business Model Analyst - https://businessmodelanalyst.com/ - Distribution prohibited
 industries that are running their business based on
technologies. Proper use of technology in the insurance
industry can diminish the harm.

This PDF File was purchased by Punyapon - [email protected]

Copyright The Business Model Analyst - https://businessmodelanalyst.com/ - Distribution prohibited
 CONCLUSION
Like every other industry, InsurTech has its critics. But if we
can overlook the criticisms for a moment, we will see it has
come as a blessing in the slow-paced, boring insurance
industry.

From its emergence to its continuous growth, there are ups

and downs, but it continues to flourish. It doesn’t only take
care of the insurance companies but also focused on
providing the best customer experience to its consumers.

The way it has impacted the value chain has made it possible
to become a game-changer in the industry. The advancement
of technology made it possible to bring a revolutionary
change in the insurance market.

From registration to claim, data collecting to analysis, it has

revamped every part of the streamline. Making faster and
simpler processes has attracted consumers to the market.
The industry is growing rapidly.

With the innovative InsurTech business models and trends,

startups are providing the best services to their customers.
The customized pricing and niche-based categories made it
possible to include all classes of people in the insurance
industry.

The easy process of getting insured freed the insurer from

doing boring tasks. Instead, they are focusing on growing
their business with creative ideas. The emergence of
ever-new trends is taking us towards the future insurance
industry.

This PDF File was purchased by Punyapon - [email protected]

Copyright The Business Model Analyst - https://businessmodelanalyst.com/ - Distribution prohibited
 REFERENCES

The following references were consulted to create this Super

Guide:

➔ https://www.itij.com/latest/long-read/brief-history-in
surtech
➔ https://www.mordorintelligence.com/industry-repor
ts/global-insurtech-market
➔ https://bimamobile.com/our-customer
➔ https://www.metromile.com/
➔ https://apextechinc.com/the-ultimate-guide-to-insur
tech-building-a-business-strategy-for-the-digital-ag
e/
➔ https://www.infigic.com/blog/what-is-insurtech-and-
its-business-model/
➔ https://dashdevs.com/blog/introduction-to-insurtec
h-business-models-challenges-trends-and-example
s/
➔ https://www.tibco.com/reference-center/what-is-ins
urtech
➔ https://www.investopedia.com/terms/i/insurtech.as
p
➔ https://n26.com/en-eu/blog/insurtech

This PDF File was purchased by Punyapon - [email protected]

Copyright The Business Model Analyst - https://businessmodelanalyst.com/ - Distribution prohibited
 ABOUT THE AUTHOR

Daniel Pereira is a Brazilian-Canadian entrepreneur that has

been designing and analyzing business models for over 15
years. You can read more about his journey as a Business
Model Analyst here.

E-mail Daniel if you have any questions

at: [email protected]
You can connect with Daniel at Linkedin:
https://www.linkedin.com/in/dpereirabr/

This PDF File was purchased by Punyapon - [email protected]

Copyright The Business Model Analyst - https://businessmodelanalyst.com/ - Distribution prohibited
This PDF File was purchased by Punyapon - [email protected]
Copyright The Business Model Analyst - https://businessmodelanalyst.com/ - Distribution prohibited