Insurance Business ReviewJanuary - March 202327Insurtech is a recent manifestation due to three reasons: the arrival of millennials associated with technological evolution, the need to ensure concepts promoted by new technologies (e.g. AI, big data, cloud, and IoT), and the emergence of different economic models as the collaborative economy.Despite being a recently used buzzword, "insurtech" does not have an established definition. Some people think insurtech is a subset of fintech, whereas popular opinion believes insurtech should be segmented from fintech. This distinction is most likely a result of fintech primarily being associated with banking activity while insurtech is more associated with insurers applying tech in broad applications. We adopt the second opinion in this report and define insurtech as follows:"Insurtech" companies are technology-led companies that enter the insurance sector by taking advantage of new technologies that provide coverage to a more digitally savvy customer base. It is a new application with a focus on consumer experience and convenience.Trending TechThe insurance industry's lack of innovation has manifested into five major challenges: talent acquisition, data storage and protection regulation, digital ID authentication, and new business model regulation. These challenges have created an opportunity for startups to incorporate the following technologies and business models into an otherwise static industry.By Lu Zhang, Founder and Managing Partner, Fusion FundINSURTECH AT A GLANCELu ZhangCXO INSIGHTS
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