Google Find us on Google+

5 Technology Trends That Give an Edge to Insurtech Startups in Emerging Asian Market

Oct 12, 2018 by

Favourable economic environment and the huge underinsured population are driving a string demand for insurance in Asia’s emerging market. And the ever-so-growing demand of insurance has made way for the spate of insurtech startup launches in the region.

According to a report by Innovators Edge, there are approximately 1,000 start-ups in more than 60 countries. Another report by Willis Towers Watson reveals Asia’s emerging market is home to approximately 7% of world’s total insurtech startups.

But that’s not all: PWC reveals in a report that insurance companies have less than 3% insurance to GDP penetration in Asia pacific region. This means that Asian insurtech startups have a considerable room to grow and expand in the region.

While insurtech ecosystem in Asia is still in its infancy, it is likely to grow fast in 2019 and beyond. In fact, a recent survey conducted by PwC found that incumbent insurers are threatened by the tremendous growth of insurtech, and 9 out of 10 insurance companies fear losing their customers to insurtech startups. In addition, approximately 74% of the insurance companies are likely to witness disruption of their business in the next five years.

But here’s the BIG QUESTION: 

“What’s giving these insurtech startups an edge over traditional insurance companies?”

The ANSWER:

The ever-so-evolving technology and potentially disruptive innovations is what driving success for these insurtech startups in the ever-so-competitive Asian market. Insurtech startups leverage evolving technology trends to provide several digital touchpoints, comfort, and personalized insurance experience to tap into the huge pool of new-age and ever-so-connected insurance seekers in the region.

In this post, we’ll pull the curtains and reveal 10 disruptive technology trends that are helping insurtech technology tap into the pool of 1.8 billion internet savvy consumers in the Asia’s emerging market.

1) Blockchain Technology: More and more insurtech startups are leveraging blockchain technology to ease out the processing of claims, lower down the cost, build trust, fraud detection, risk prevention, and eliminate the risk of cyber threats. In fact, the immense potential of blockchain technology is driving growth for insurtech startups.

2) Wearable Technology: Wearable technology is still in its infancy, but it has got tremendous potential to transform the insurance industry worldwide. In fact, by 2022, wearable tech market is likely to grow at a CAGR of 15.5%. Approximately 42% of insurtech startups in the Asian market leverage sensor-based technology and wearable tech to generate measurable and relevant data to facilitate precise insurance underwriting.

3) Chatbot Technology: Chatbot technology is perhaps one technology trend that has been going strong globally for last couple of years. A large number of insurtech startups deploy chatbots to identify customers’ risk profile, underwrite accurate insurance policies, provide query resolution online, etc. In fact, a report by Capegemini-Efma explains that 75% insurance players are planning to invest a sizeable amount of money in the Chatbot technology in 2019 and beyond.

4) Robotic Process Automation: This was one of the winner tech trends for insurtech startups in 2018 and it is likely to go stronger in 2019 and beyond too. More and more insurtech startups in Asia pacific region ate deploying robotic process automation to boost their productivity, fasten the insurance underwriting process, speed up the claim resolution process and ascertain fraud detection.

5) Artificial Intelligence Automation: Over the years,Artificial intelligence (AI) has been making headlines across the globe. Insurtech startups were the first in the global Fintech industry to leverage this technology to provide usage-based insurance. Artificial intelligence helps insurtech firms to develop their predictive precision by mining precise customer data and scale analytical capabilities across the firm.

Wrapping it Up!

So there you have it – 5 technology trends that have helped insurtech startups disrupt the insurance industry over the years. Willis Towers Watson, popular re/insurance broker, reports that total transactional volume of insurtech mergers and acquisitions has crossed US $460 million over 2017, as against 2016, in Asia. The increasing demand and changing customer behaviour is driving the change and helping insurtech startups in the Asia pacific region capture the fancy of investors.

Print Friendly, PDF & Email

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

UA-24036587-1