Kunal Choudhary’s Post

Insurtech refers to the use of technology to innovate and improve the efficiency, customer experience and business models within the insurance industry. Insurtech companies leverage digital platforms, data analytics, artificial intelligence and automation to provide new and innovative insurance products and services. Their focus is on disrupting traditional insurance practices and making insurance more accessible, affordable, and user-friendly. Scanning the internet, the following insuretech models are observed: • These companies operate entirely online, offering insurance products and services through user-friendly digital interfaces, providing a seamless customer experience. • Insurtech firms use advanced data analytics and machine learning algorithms to assess risks and underwrite insurance policies more accurately and efficiently. • Some insurtech companies facilitate peer-to-peer insurance models, where individuals can pool their resources to share the risk and cost of insurance coverage. • Insurtech firms offer flexible, on-demand insurance solutions that allow customers to adjust coverage based on their needs, often through mobile apps. • Utilizing blockchain technology, insurtech companies create smart contract platforms for automated policy issuance, claims processing, and secure data management. The most cited examples of insuretech in Asia are ZhongAn and Go-Jek. ZhongAn is an insurtech company known for providing digital insurance solutions, leveraging big data and AI for risk assessment and policy management. Go-Jek, a multi-services platform, offers several insurtech products integrated into its platform, including microinsurance and ride-hailing insurance. In Europe, popular examples are Lemonade and Bought-by-Many. Lemonade is a digital insurance platform that uses AI and behavioral economics to offer homeowners and renters insurance. Bought-By-Many is an insurtech company that specializes in creating unique, tailored insurance products through data-driven customer insights. There are many examples of insurtech companies in Malaysia and I have to refrain from naming just 2 as that would offend my other friends. All continue to transform the Malaysian insurance landscape by introducing innovative products, improving operational efficiency, and enhancing customer engagement. We are eagerly anticipating the release of the upcoming BNM Policy Document on Digital Insurance and Takaful Operator, where we hope to see: • the unique benefits that insurtech players can offer to the insurance/takaful value chain • business models, including potential changes in business processes and activities (e.g., underwriting) from insurers/takaful operators • changes to the regulatory environment needed to implement these potential business models. Lets wait and see. I wonder what challenges the new DITOs would pose to incumbents? Are there common grounds for collaboration?

Daily research from FinTech Global USA InsurTech deal activity falls nine percentage points more than general market in Q1 2024 In the first quarter of 2024, the deal activity within the US InsurTech sector saw a decline, totalling 41 deals, marking a significant 32% decrease compared to the same period in 2023 and a nine percentage points more than general market’s 23% drop. USA InsurTech companies also experienced a downturn in fundraising, collectively securing $328m, reflecting a notable 28% drop YoY. Clearcover, a next-gen car insurance provider, had the largest USA InsurTech funding round in Q1 2024, after raising $55m in their latest venture round. No comments were made about the funding round. The week prior to this funding round Clearcover launched their generative AI insurance tool to expedite claims processing and improve customer experience. "Our underlying foundation was built with best-in-class technology for digitally native customers, which has enabled us to get ahead of the curve," said Clearcover CEO and Co-founder Kyle Nakatsuji. "I am incredibly proud of our Product, Claims and CX departments for leaning into this industry challenge and raising the bar for AI insurance solutions." As one of the first-to-market InsurTech to include this capability, Clearcover is rolling out a series of AI products to enhance its end-to-end insurance experience. Earlier this year, Clearcover's custom-built claims assistant began supporting claims adjusters in analyzing files and drafting communications to claimants and their representatives. The company also plans to integrate conversational AI into its mobile app to answer customer questions 24/7 in real-time. The feature will later be included within the company's agent portal and website. New York was the most active InsurTech state in the USA with 11 deals, a 27% share of deals. This was followed by California with 10 deals, a 24% share of total deals and Texas was third with four deals, a 10% share of deals.  

Insurtech vs Digital Distribution of Insurance Policy 🍏 🍊 Welcome to the debate of the difference between Insurtech and Digital Distribution of insurance policies. 1. Insurtech Insurtech by definition refers to the use of technology and innovation to improve key functions of the value chain of insurance industry. Insurtech companies leverage advanced technologies like artificial intelligence (AI), big data, blockchain, machine learning, and automation to create new products, enhance customer experience, streamline operations, and reduce costs. Key functions in the value chain include: ·       Risk assessment by combing big data ·       Pricing by detailed profiling of the risks ·       Claims Processing by data based fraud detection, and quicker settlements. ·       Product Innovation such as parametric insurance. ·       Digital distribution to use mobile apps, chatbots, and AI to improve the purchasing and servicing of insurance. Insurtech is a broader term that encapsulates a wide variety of tech-driven solutions aimed at transforming the insurance sector at various levels. 2. Digital Distribution Digital Distribution refers specifically to the online or digital channels through which insurance products are sold and delivered. It focuses on how insurance products reach the consumer via digital platforms, bypassing traditional agents or brokers. Key elements of Digital Distribution are Online Platforms: Websites and mobile apps that allow customers to buy insurance directly. Aggregators and Marketplaces: Websites that compare insurance products from multiple providers, helping customers choose the best option. API Integration: Distribution via embedded insurance where partners like e-commerce platforms or travel booking websites offer insurance directly through APIs. Direct-to-Consumer: Insurers or insurtech firms sell policies directly to customers bypassing intermediaries. Digital distribution is just one aspect of how insurance is being transformed. Although it's often a part of insurtech strategies, it mainly addresses the sales and customer acquisition processes. ⁉️ Key Differences: Insurtech covers a broad range of innovations, from product development and claims processing to underwriting and customer experience. Digital Distribution is specifically about how insurance products are marketed and sold to customers through digital channels. Insurtech focuses on transforming the entire insurance value chain. Digital Distribution focuses on improving access to insurance products and streamlining sales processes. Your views ❓ KlarityMaxime LetribotMichael HÖRRMichel BrancaléoniFrédéric RigolletAnouk BaraJean-Jacques LOHEAC ✭ Interim CIO ✭ Transformation DirectorOdile GuichardDavid ValleeEmmanuel ValléeGuy PerraudHenri DEBRUYNEGilles GossonXavier Vankeerberghen Pierre Le Roux

Post#0126 **Title: Technology's Impact on Insurance: A Brief Overview** In a recent article for The Economic Times, Tapan Singhel Sir, CEO of Bajaj Allianz General Insurance, highlights how technology is transforming the insurance industry. Despite trust issues, data shows insurers are paying claims, but awareness and accessibility remain challenges. Tapan Singhel Sir explains how technology addresses these issues. Online platforms provide information on insurance products, AI-powered bots simplify policy explanations, and mobile apps allow easy policy management. Claims settlement has become quicker and more accurate with AI and machine learning. Some insurers offer on-the-spot settlements using image uploads and drones, especially during natural disasters. Initiatives like 'Cashless Everywhere' in health insurance provide access to network hospitals across insurers, reducing financial burdens, concludes by emphasizing technology's role in providing convenience, efficiency, and personalized solutions in insurance. Overall, the article offers valuable insights into technology's transformative impact on the insurance sector, making it essential reading for industry professionals and consumers.

US companies completed more than half of all InsurTech deals in Q1 2024 globally   Key global InsurTech investment stats in Q1 2024: • Global InsurTech deal activity reached 140 funding rounds in Q1 2024, a 38% reduction from Q1 2023 • InsurTech companies raised a combined $872m in Q1 2024, a 66% decrease YoY • The USA was the most active InsurTech country in Q1 2024 with a 55% share of global deals In the first quarter of 2024, the global InsurTech sector witnessed a significant decline in deal activity and funding compared to the same period the previous year. There were 140 deals recorded, marking a 38% reduction from the first quarter of 2023. InsurTech companies collectively raised $872m during this period, which represents a 66% decrease in funding YoY. Perfios, which provides a real-time medical claims processing solution, completed the largest global InsurTech deal in Q1 2024 after raising $80m in their Series D extension. The new funding pushes Perfios’ valuation to $1bn. Perfios announced its intention to further expand internationally and enhance its global presence. The company aims to use the funds to explore opportunities for inorganic growth and bolster its technological infrastructure. Additionally, Perfios plans to invest in advancing its tech stack to support seamless customer experiences across various sectors, including banking, insurance, and embedded commerce. The USA was the most active InsurTech country in Q1 2024 with 77 deals, a 55% share of global deals. This was followed by the UK with 10 deals, a 7% share of deals. Third was Canada with six deals, a 4% share of deals. One area where the insurance industry could face significant disruption is the opportunity and potential threat posed by the growth in embedded insurance. The concept is not new, but what’s changing rapidly is the volume of insurance premiums for major lines likely to be built into other types of third-party transactions, bypassing traditional sellers, such as insurance agents, upending direct-to-consumer sales from insurers, or even excluding legacy carriers altogether. According to Fabrick, a open finance provider, in Europe the Embedded Insurance industry is expected to steadily grow, recording a CAGR of 19.4% by 2029. Embedded Insurance revenues are projected to increase from $10.7bn in 2022 to $28.5bn in 2029.

How about risk-free innovation? Innovation in insurance, whether it's about re-inventing processes, developing new IT solutions, or shifting from the usual, often appears full of risk. What if the results fall short, users resist, or costs spiral out of control? I understand these concerns. Why expose yourself and your company to risk when your current processes seem sufficient? But how much better could they work? What increased value, insights and cost reduction could you gain? How can you know if you don’t explore new ways of working? I believe the status quo isn't sufficient for a changing industry as important as ours. That's why we've introduced risk-free trials for Mavera DSS, designed to limit time and cost commitments to a minimum. It's as simple as this: • Together, we define clear KPIs for a specific timeframe • After a quick onboarding, you'll dive into the capabilities of Mavera DSS • Our customer success team supports you throughout • We'll assess the results together If you're not satisfied, there's no obligation to proceed. You’ll return to your previous processes, now enriched with new insights. Yet, in 90% of cases, insurers experience substantial process improvements, efficiency gains and new business insights. Then they opt to continue with us. The ability to mitigate the risks of innovation is just one reason I believe Insurtech is essential for driving progress in the traditional insurance sector.

Insurance SaaS aka Insure-tech has transformed the insurance industry tremendously over the last decade. Through technology, companies are revolutionizing customer experience, operations and claims management. Key segments the insurance Saas has created are as below ⁃ new age insurers such as Acko Support, Hippo Insurance, Digit Insurance TROV INSURANCE SOLUTIONS, LLC ⁃ Marketplaces like Policybazaar.com, InsuranceDekho, Bimakaro.in, Insuremile -Protection Beyond Benefits ⁃ Claims management solutions such as Claim Genius, InsureVite (Kitabelo), Insurity, Bajaj Finserv ⁃ Sales CRM providers like InsuredMine, Vymo, Zipari, Sureify ⁃ Analytics companies like Artivatic.ai [Insurtech & Healthtech] , Riskovery Insurance Web Aggregator Pvt Ltd, QubeSys Technologies There are decacorns, unicorns and soon-to-be-unicorns in this sector and we get to see more. Detailed analysis from our research team about the insurance industry includes  ⁃ A brief history of insurance in India and how the industry has evolved with its privatization after the late 90s - The insur-tech landscape and how the implementation of technology has resulted in new business models, and value chain enhancements. - Key metrics an insurtech entrepreneur should identify and track to grow their business. Keep your eyes out for our upcoming newsletter: A CFO's Musings, where we cover all these topics in depth.

  Insurtech: Revolutionizing the Insurance Industry in Africa Insurance Technology, often referred to as Insurtech, represents the integration of technological innovations into the insurance industry, transforming traditional practices and enhancing efficiency across various functions. Here’s an exploration of how technology is revolutionizing the insurance industry: The industry is constantly leveraging on Artificial Intelligence (AI) and Machine Learning (ML) algorithms to automate underwriting processes. AI analyzes vast amounts of data to assess risks more accurately and quickly than traditional methods, thereby resulting in precise projections of likely outcomes. AI algorithms can predict risks with greater precision by analyzing historical data, customer behavioral patterns, and external factors such as weather or economic indicators. Insurers can tailor insurance products more closely to individual customer needs based on AI-driven insights, offering personalized premiums and coverage options. Insurance organizations have adopted the use of apps to monitor customer behaviours and patterns, such as the one deployed in analyzing the insured’s driving habits on the road real time and sending such information to the insurer for analysis and decisions on the level of risk exposure. Proactive risk prevention and reduction is continuously being deployed by the use of IoT (Internet of Things) devices such as sensors in homes or wearables. As this provides insurers with data on risk exposures. Insurers offer incentives for policyholders who adopt risk-reducing behaviors, such as installing security systems or maintaining healthy lifestyles. Insurers deploy chatbots and virtual assistants to provide real-time customer support, answer queries, and guide customers through the insurance process. Insurtech enables insurers to deliver personalized customer experiences through data-driven recommendations, proactive notifications, and responsive services. In summary, Insurtech is revolutionizing the insurance industry by leveraging technological innovations such as AI-driven underwriting, blockchain for claims processing, IoT for risk assessment, and data analytics for customer insights. These advancements enhance operational efficiency, improve risk management capabilities, and elevate customer experience, positioning insurers to adapt to evolving market demands and regulatory requirements effectively.

Daily research from FinTech Global US companies completed more than half of all InsurTech deals in Q1 2024 globally In the first quarter of 2024, the global InsurTech sector witnessed a significant decline in deal activity and funding compared to the same period the previous year. There were 140 deals recorded, marking a 38% reduction from the first quarter of 2023. InsurTech companies collectively raised $872m during this period, which represents a 66% decrease in funding YoY. Perfios, which provides a real-time medical claims processing solution, completed the largest global InsurTech deal in Q1 2024 after raising $80m in their Series D extension. The new funding pushes Perfios’ valuation to $1bn. Perfios announced its intention to further expand internationally and enhance its global presence. The company aims to use the funds to explore opportunities for inorganic growth and bolster its technological infrastructure. Additionally, Perfios plans to invest in advancing its tech stack to support seamless customer experiences across various sectors, including banking, insurance, and embedded commerce. The USA was the most active InsurTech country in Q1 2024 with 77 deals, a 55% share of global deals. This was followed by the UK with 10 deals, a 7% share of deals. Third was Canada with six deals, a 4% share of deals. One area where the insurance industry could face significant disruption is the opportunity and potential threat posed by the growth in embedded insurance. The concept is not new, but what’s changing rapidly is the volume of insurance premiums for major lines likely to be built into other types of third-party transactions, bypassing traditional sellers, such as insurance agents, upending direct-to-consumer sales from insurers, or even excluding legacy carriers altogether. According to Fabrick, a open finance provider, in Europe the Embedded Insurance industry is expected to steadily grow, recording a CAGR of 19.4% by 2029. Embedded Insurance revenues are projected to increase from $10.7bn in 2022 to $28.5bn in 2029.   Perfios hyperexponential Nidhi Thapar Clearcover ELEMENT Insurance AG Qoala Eye Security Hellas Direct Healthee Coterie Vouch Insurance

Insurtech and Carriers/Brokers: How We Compliment Each Other We’ve seen a new trend over the last few years where businesses are integrating insurance into their offerings, creating great opportunities for insurers and insurtechs. Many will not fully understand this ecosystem, thinking that insuretechs compete with the traditional industry. However, at Indeez we work together with our traditional partners. So how do they complement each other? Insurers bring financial security and regulatory expertise, while insurtechs offer innovative technology and adaptability. As an orchestrator and insurance intermediary, Indeez plays a unique role in the insurance ecosystem. We partner with large insurers and brokers to help create the best digital insurance experience. Consider these three aspects for an effective partnership: 🌐 Embracing Digital Change: Tech-driven solutions reduce costs and make insurance more accessible. Embedded insurance seamlessly integrates into daily transactions, enhancing the customer journey. 🤝 Choosing the Right Partners: Effective partnerships deliver the right products at the right time. Insurtechs benefit from insurers' strengths, and vice versa, ensuring mutually beneficial collaborations. 💡 Drive Collaboration: Strategic alliances drive innovation and meet diverse customer needs, creating a more efficient and user-friendly industry. With our modular orchestration, insurance companies can choose from our range of platform services, from API-led user portals to claims and lifecycle management, to build their ideal digital insurance experience. Want to know more about how Indeez partners with insurers? Get in touch with us today! Indeez