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    Fintech 5

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    Taaran Reddy
    Insurtech has the potential to disrupt the traditional insurance industry by using technology to improve product design, distribution, and claims management. Key areas for disruption include using data and analytics for personalized products, reducing distribution costs through digital channels, and simplifying claims processing with tools like automated damage assessment. Emerging technologies like IoT, AI, and telematics could also help create new types of usage-based and microinsurance products. While regulation remains a challenge, the Indian insurtech landscape is growing with startups addressing opportunities in areas like digital distribution, customized underwriting, and streamlined claims administration.

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    Fintech 5

    Uploaded by

    Taaran Reddy
    8 views13 pages
    Insurtech has the potential to disrupt the traditional insurance industry by using technology to improve product design, distribution, and claims management. Key areas for disruption include using data and analytics for personalized products, reducing distribution costs through digital channels, and simplifying claims processing with tools like automated damage assessment. Emerging technologies like IoT, AI, and telematics could also help create new types of usage-based and microinsurance products. While regulation remains a challenge, the Indian insurtech landscape is growing with startups addressing opportunities in areas like digital distribution, customized underwriting, and streamlined claims administration.

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    Insurtech has the potential to disrupt the traditional insurance industry by using technology to improve product design, distribution, and claims management. Key areas for disruption include using data and analytics for personalized products, reducing distribution costs through digital channels, and simplifying claims processing with tools like automated damage assessment. Emerging technologies like IoT, AI, and telematics could also help create new types of usage-based and microinsurance products. While regulation remains a challenge, the Indian insurtech landscape is growing with startups addressing opportunities in areas like digital distribution, customized underwriting, and streamlined claims administration.

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    © All Rights Reserved
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    8 views13 pages

    Fintech 5

    Uploaded by

    Taaran Reddy
    Insurtech has the potential to disrupt the traditional insurance industry by using technology to improve product design, distribution, and claims management. Key areas for disruption include using data and analytics for personalized products, reducing distribution costs through digital channels, and simplifying claims processing with tools like automated damage assessment. Emerging technologies like IoT, AI, and telematics could also help create new types of usage-based and microinsurance products. While regulation remains a challenge, the Indian insurtech landscape is growing with startups addressing opportunities in areas like digital distribution, customized underwriting, and streamlined claims administration.

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    of 13

    Insurtech

    Fintech and Financial Markets


    Dr Sanjay Mansabdar
    School of Management, Mahindra University
    Introduction
    • Insurance has generally been an opaque industry An industry ripe for
    • Terminologies are complex and costs are opaque disruption
    • Significant bundling of products
    • Savings + Insurance
    • Embedded Insurance:
    • Credit Shields in Loans
    • Distribution costs have been very large
    • LIC Agents
    • Highly Regulated Industry
    • Pull products driven by regulation
    • Push products require significant education effort
    InsurTech
    • Pool products – little customization
    • Administration has been complex with higher costs
    How traditional Insurance Works
    • Actuarial Analysis and Risk Pools, Mitigation
    Product
    Design
    • Product Pricing, including expected investment returns

    • Distribution – Proposals, Underwriting


    Product Sales • Distribution Channels

    • Claim filing, verification, damage assessment, surveyors


    Claim
    Management
    • Claim Payment and Renewal/Termination
    Key Areas for Disruption
    • Can technology help create newer/personal products
    Product Design • Can technology help create effective products
    • Can technology help create cheaper products

    Product • Can technology reduce distribution costs


    • Can technology allow for greater reach
    Distribution • Can technology reach specific types of risk pools

    Claims • Can technology simplify KYC


    • Can technology help with damage assessment
    Management
    Risk Pooling: The Cons

    Cross Subsidization Moral Hazard

    Risk Pooling

    Lack of Coverage Lack of personalization


    Product Design
    • Customer behaviour •Automated •IoT devices for health
    underwriting •IoT for Agri • Healthier people pay
    pricing/cancellation/
    •Significant complex lower premiums
    fraud slicing for U/W
    • Low risk farms pay
    • Custom risk pools may •Custom risk pools
    lower premiums
    offer lower risk
    • Ring, Censio, Nest
    • DuckCreek Novidea
    IoT &
    Underwriting
    Wearables

    Risk Embedded &


    Mitigation Micro
    • Customers pay per using Data Insurance
    • Customers reduce
    their situation risks
    •Customer behaviour •Durables
    • Insurers get access to •Customer Data •Travel Insurance • Insurers develop
    data new products •Credit Shield newer products
    • Helper Bees,
    • CoverGenius, Railsr
    Pumpkin
    Product Distribution
    Works Synergistically with Product Design
    Can we reach those who will buy? Can we build for those we can reach? Sales of microinsurance generate
    Policy Bazaar, Turtlemint Alyve valuable data for product design

    Distribution is a Key Cost [MF vs Insurance Agent Commision]

    Education & Trust costs [Dvara E Registry] May even exceed risk cost [Gramcover]

    Customers need help – comparison platforms


    Many products and features Cost and Value comparison
    InsurTechs in India: Distribution Focused
    Company Business
    Policy Bazaar Distribution - Online
    Acko Digital Insurance Products
    Digit Insurance Digital Insurance Products
    OneAssist Distribution - MicroInsurance
    SecurNow Distribution - SME
    CoverFox Distribution
    TurtleMint Distribution
    Toffee Insurance Distribution - Microproducts
    RenewBuy Distribution - Renewal
    Kenko Health Distribution - Health
    Administration & Claims Management
    • Easy mechanisms • Automated InspektLabs
    SecureNow of claims Damage
    registration Assessment
    RenewBuy • Weather Insurance
    Pazcare

    Claim Filing & Damage


    Administration Assessment

    Fraud
    Renewals
    Detection
    SkopeNow
    Picsure • Post payout • Reminders
    monitoring • Product
    InspektLabs Comparisons
    PRX Control
    The Potential for AI in InsurTech
    Case Study: Acko General Insurance

    Using Technology to
    Digital Only General AI driven digital
    enhance buying
    Insurance claims process
    experience

    AI driven Technology
    underwriting IoT and Telematics integrations allow for
    facilitates immediate for UBI Nano and Micro
    policy issuance Insurance
    Key Trends for Insurtech in India
    • Distribution costs are still large
    • MicroInsurance
    • Large Trust Deficit
    • Poor Claims Experiences
    • Hardsell from Agents
    • Significant Regulation
    • Product design is slow within established frameworks
    • This is rapidly improving (IRDA sandbox)
    • Insurance is seen as a cost, not as risk management
    • Ideally every aspect of risk should be insurable
    • Pure insurance versus bundling with Savings is becoming clearer
    • Tax benefits for Insurance are falling

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