By Karl Heinz Passler
Product Manager and Startup Scout, Basler Versicherungen
For decades, the insurance industry did business as usual. In 2010, a new kind of tech company started up in the vertical market and began to offer innovative, tech-based services to established risk carriers, intermediaries, and their customers. In 2017 the number of these so-called InsurTech startups skyrocketed to over 1,000 around the globe. On first impression, you can hardly distinguish InsurTech startups from one another. What are the key differences, and which have the potential to deeply change, or even disrupt, the insurance industry?
InsurTech Startups Take the Next Step
The term “InsurTech” is used to describe innovative, tech-driven ways of solving customer, operational, and business model problems in the insurance industry. InsurTech startups look at the industry as it is. They investigate the pain points that insurers, intermediaries, and their customers suffer from, and employ tech-driven solutions to ease those pains. These startups often observe successful technology-oriented solutions in other sectors, such as finance, and transfer them to the insurance sector.
These types of startups can be divided into three groups:
- Startups improving the customer experience
- Startups enabling incumbent providers
- Startups starting as risk carriers.
Startups Improving the Customer Experience
Insurance customers have come to expect the same level ...