What factors must you consider when developing insurtech products for specific insurance sectors?

1 Customer expectations

One of the most important factors to consider when developing insurtech products is the expectations of your target customers. Depending on the type of insurance sector, customers may have different preferences, pain points, and behaviors that influence their decision-making and satisfaction. For example, customers in the health insurance sector may value convenience, personalization, and transparency more than customers in the property insurance sector, who may prioritize speed, reliability, and security. Therefore, you must understand your customer segments, their needs, and their expectations, and design your insurtech products accordingly.

2 Regulatory environment

Another factor to consider when developing insurtech products is the regulatory environment of the insurance sector you are operating in. Different insurance sectors have different laws, rules, and standards that govern how they operate, what they can offer, and how they can interact with customers and other stakeholders. For example, the life insurance sector may have stricter regulations on data privacy, underwriting, and disclosure than the travel insurance sector, which may have more flexibility and room for innovation. Therefore, you must comply with the relevant regulations, monitor any changes, and adapt your insurtech products accordingly.

3 Competitive landscape

A third factor to consider when developing insurtech products is the competitive landscape of the insurance sector you are entering or disrupting. Different insurance sectors have different levels of competition, differentiation, and consolidation that affect how you position your insurtech products and how you communicate your value proposition. For example, the auto insurance sector may have more competition, less differentiation, and more consolidation than the pet insurance sector, which may have less competition, more differentiation, and less consolidation. Therefore, you must analyze your competitors, identify your competitive advantages, and differentiate your insurtech products accordingly.

4 Technological feasibility

A fourth factor to consider when developing insurtech products is the technological feasibility of your ideas and solutions. Different insurance sectors have different technological capabilities, limitations, and opportunities that affect how you implement your insurtech products and how you deliver your services. For example, the cyber insurance sector may have more technological capabilities, fewer limitations, and more opportunities than the marine insurance sector, which may have less technological capabilities, more limitations, and fewer opportunities. Therefore, you must assess the technical feasibility, viability, and scalability of your insurtech products and choose the best technologies accordingly.

5 Business model

A fifth factor to consider when developing insurtech products is the business model of your insurtech venture. Different insurance sectors have different business models, revenue streams, cost structures, and value chains that affect how you monetize your insurtech products and how you create value for your customers and partners. For example, the peer-to-peer insurance sector may have a different business model, revenue stream, cost structure, and value chain than the traditional insurance sector, which may have a more conventional business model, revenue stream, cost structure, and value chain. Therefore, you must define your business model, validate your assumptions, and optimize your value proposition accordingly.

6 Social impact

A sixth factor to consider when developing insurtech products is the social impact of your insurtech products on the society, the environment, and the insurance sector itself. Different insurance sectors have different social impacts, risks, and opportunities that affect how you align your insurtech products with your mission, vision, and values, and how you measure your success and performance. For example, the microinsurance sector may have a more positive social impact, less risk, and more opportunity than the drone insurance sector, which may have a more negative social impact, more risk, and less opportunity. Therefore, you must consider the social impact, risk, and opportunity of your insurtech products and integrate them into your strategy and operations accordingly.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?