Some insurers no longer hesitate to collaborate with insurtech, providing themselves with all the financial resources that they are short of. The advent of this new model rests on partnerships: insurers-start-ups-technologies.
Assurtech revolutionizes insurance
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Nowadays, the emergence of these start-ups, commonly called insurtech, has revolutionized an ancient and mature activity. The technological shock risks to be violent. These companies do not hesitate to overhaul the existing system by making recourse to innovation as an asset. The interest shown by giant corporations such as Google in insurance is full of significance. The prospects offered by insurance to new corporate are huge. It is high time current players, lagging behind technologically, were pressed to get on board.
Traditional insurers are therefore under pressure and are required to shape up. While some of them consider that insurtech are direct competitors, others believe that their involvement constitutes an opportunity for growth.
Even if collaboration between insurtech and insurers grows, both partners are competitors. Some believe that the regulators are required to ensure that the same rules apply to all the players. Others think otherwise, stressing the need for a principle of proportionality to prevail as insurtech are no insurers.
Investments in insurtech increased between 2014 and 2016
Between 2014 and 2016 investment in insurtech had more than doubled reaching approximately 2 billion USD. Agreements focus on developed countries since more than half the operations are for the time being carried out on American territory.
Great Britain, Germany, India and China are also important markets while developing countries, including those located at the core of the African continent, are promising in view of the key role of cellular phones.