The INSURTECH Book

Seeing through the Hype – A Closer Look at Key Smart InsurTech Business Models

By Karolina Burmeister

Senior Relationship Manager, OP Financial Group

Working in the insurance industry, it is impossible to avoid the ongoing hype around the industry’s digitalization, commonly called #fintech or #insurtech. According to believers, new insurance startups will rapidly emerge and rule the world, based on superior customer experience. Alternatively, will new technologies reduce the need for insurance altogether? Based on my 20+ years’ experience of evaluating business models, I decided to comment on some themes that frequently emerge. I also wanted to look at it all specifically from a European perspective.

Many of the proposed InsurTech business models are not new, but instead they take advantage of technology that was not previously available. Superior customer experience is an advantage in itself, if it helps people to buy insurance cover. Reduced risk levels are a great advantage to society. Still, in many cases technology will merely shift risks from end-users to service providers. For example, all service providers will desperately need cyber insurance to cover liability and data breaches. There are many steps to go before a startup becomes a sustainable and profitable business.

Smart Health Insurance

The idea: “Heart rate and blood pressure can be monitored by biometric sensors and smartwatches. This provides real-time data and incentives to consumers.”

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