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.
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:
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
a. Indian examples: Artivatic.ai, 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