Insurtech Startups That Can Bring Digital Transformation To The Insurance Industry
There is a wave of insurtech startups emerging each year. Some fall by the wayside, others become major players. Five companies set to make it big in 2019 are profiled, from an insurance as a service pioneer to a blockchain innovator.
The insurtech sector has grown rapidly in recent years, with a number of startups launching new products and making it easier for consumers to buy insurance. Many of these are products of startup accelerators. The most successful insurtech players, according to TechWorld, appear to be those who focus on building new products to address the changing needs of the customer.
The traditional model of an insurance company offering a standardized product to the customer is on its way out. Many customers, especially millennials, want more choice and a flexible approach to insurance products.
This flexibility to decide what to insure (“insurance as a service”) is being met by several insurtechs, who are offering insurance products tailored to the customer. An example is the company Valoo, which offers a straightforward way for customers to make an inventory of possessions. This can be via video or photographs. These items can then be valued by artificial intelligence scanning the items, and then short-term insurance being offered.
InsurTech startups are deploying blockchain technology to disrupt the insurance industry. One important application is using the technology to have an ecosystem where smart contracts can be transacted, and being able to bring these policies to the market in a convenient, consistent, and coordinated manner.
An example of this service comes from us here at Inmediate, which makes policies transparent and trustworthy by using Smart Contracts, powered by the Zilliqa blockchain solution. We digitize entire policies into the blockchain — the code is fixed and cannot be tampered with. We also provide the Insurance industry with that ecosystem where Smart Contract Insurance can be transacted at lightning speed, full clarity, and at much lower costs than ever imagined.
Big data analytics
Big data encompasses the massive amount of stored information on anybody who has ever had a digital connection — and this data is of value to insurance companies. The startup Cystellar operates a cloud-based big data analytics platform. The aim is to offer insurance firms data-driven decision making. Cystellar’s platform uses predictive analytics for insurtech firms. The main focus is on trying to predict and thereby avoid damaging events, such as natural disasters that might affect agtech and foodtech companies.
With traditional insurance people pay in the same money (which often goes up) whether a claim or made or not. This model is challenged, for bicycle insurance, by the startup Laka. The company operates a community-based model for bicycle insurance. The monthly maximum is fixed at around £18. However, this reduces depending on how many claims are filed by the wider community.
Cyber attacks are a feature of modern life. To help drive down insurance costs, many companies are keen to know how they can improve their systems are services. An example startup in this space is ThreatInformer. The company provides cyber risk intelligence to the insurance industry. The firm creates tools for users to transform the way risks are written, using a security-as-a-service platform. The aim is to use productive analysis of security assessments and environmental factors to enable business users to see the full risk picture.