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Insurtech players are changing the game

Insurtech is a growing space and in a country like India, there is a huge growth potential for companies in this sector.

The industry is primarily governed by #irdai which is known to be very stringent and a very important regulatory body to reduce the unethical approaches adopted in the past and act as a safeguard against misspelling.

The idea of this post is to throw some light on what is categorized as Insurtech and what business models they have adopted with a specific focus on India while also covering business models that exist globally.

Recently, IRDAI came up with regulations opening up the sandbox environment and also opening up the investments in insurance players via PE or promoter dilution. A lesser-spoken implication of this is the possible growth push to Insurtech companies.

But what is Insurtech? Are they insurance companies x tech companies? The answer is somewhere in between.

So let me pen down a few existing and upcoming business models currently prevalent with a few practical examples; and what’s next in store:

1. Marketplace

a. Indian examples: Policy Bazaar & RenewBuy

b. Value chain solution: sales and marketing of insurance products

c. Revenue model: commission charged on each policy sold

d. Value addition: Accessibility to insurance products

2. Online insurers

a. Indian examples: Digit, Acko

b. Value chain solution: Digital native insurance company

c. Revenue model: Premium & interest income

d. Value addition: Customised offering without fixed overheads

3. Enterprise tech

a. Indian examples: Kruzr

b. Value chain solution: product development, risk management

c. Revenue model: contract and renewal fee

d. Value addition: Developing analytic model or risk data analysis for deeper insights to develop products

4. SaaS

a. Indian examples:, Symbo

b. Value chain solution: claims management, administration, analytics

c. Revenue model: Monthly fee

d. Value addition: API based plug and play solutions, reduced TAT

Exciting Value propositions coming up

+ Embedded Finance: Bite-sized insurance as a checkout facility while buying a product /service. For example, while booking a flight/train, buying a product off Amazon. Example: Covergenius

+ P2P insurance: Pooled premiums from a small group to ensure against a common risk enabling affordability, greater transparency, and a refund process

Global Example: Friendsurance, Dynamis

+ Pay as per use insurance: Only use the insurance when you feel you may need it, like when driving or travelling

Global Example: By Miles, Hippo Insurance

I hope this post was helpful and happy to hear your thoughts in the comments


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