The 21st century gave birth to the start-up revolution, where young minds, ignited with the power of technology, dived into the business. With ideas fostered by digital innovation, some of these start-ups have already given the big giants a run for their money. While the United States is often referred to as an innovation hub, the country supporting the maximum number of start-ups today is Germany. In the league of new businesses, insurance technology or the Insurtech is booming considerably in Germany.
An average German family holds two to three insurance policies. Typically, there is insurance for almost everything, be it health, car, house, pets, or other significant assets. Thus, making Germany the sixth biggest insurance market in the World.
There are many insurance companies providing liability insurance in Germany, however, Coya insurance is one of the leading InsurTech company in Germany, driven by the power of data science, they are tireless working to making the insurance space more personalised and customer-oriented.
Like every other industry or government agency, the worldwide insurance industry is trying its best to leverage digital power. The expansion and acceptance of InsurTech have a distinctively acknowledged this progression. What primarily started as the digital distribution of data and is now moving towards using the BIG data to uplift the sales and marketing numbers.
What led to the birth of InsurTech?
Data is the oxygen of the insurance and banking industry. The insurance companies are aware of the growing technological advancement and customer preference towards the digital way of life. Thus, the need to reinvent the insurance industry, access the global customer data, and bring in technology-driven disruption led to the Digital Insurtech industry’s birth. Looking at this industry’s potential, over the last few years, it has also seen many Big investors. In the years to come, there will be a dynamic shift in the way insurance companies do business.
What is InsurTech?
Powered by technology, InsurTech is the arrangement of tools and various modern technological innovations, popularly used to enhance a unit’s efficiency, and it is far more advanced than the traditional insurance industry systems. For insurers, the entry into the InsurTech industry opens new opportunities that can redefine the insurance industry’s future.
What is the Future of the InsurTech Industry?
As per the 2016 CB data, the global investments in InsurTech amounted to a total of US$1.7bn, this figure in terms of its value is almost double from what it was in 2014. Moreover, with the growing popularity of this industry, countries like the UK, China, and Germany are now considered the hot spots of InsurTech.
What are the factors that led to the rise of the InsurTech Industry?
- Rapid Growth of Tech Start-ups
The emergence of cohort start-ups that provide technical support in analytics, AI, and IoT has opened new avenues of growth for the insurance industry. These factors allow the insurance industry to deliver personalized data and better real-time future predictions to their customers.
- Insurance Industry Digital Investments
The traditional Insurance industry has itself taken great interest in investing their stakes in their industry’s growth. The year 2016 saw a rise in the number of InsurTech deals done by the insurance companies.
- Data Science and Artificial Intelligence
Insurance is a data-hungry industry; thus, over the years, the insurers have realized the importance of modern analytical technologies like Artificial Intelligence and the Internet of Things that can allow them to access data like never before. Therefore, a large investment in various forms of technology is being pumped from the insurers itself.
- Health Wearable Gadgets
As per the KMPG report’s findings, the health insurance industry will require technological intervention the most. Today with every other individual across the Globe wearing a health gadget, the amount of data collected in software is humongous; thus, to access this database, insurance companies have no other choice but to invest in the InsurTech space.
The Bottom Line:
Like every other industry, the insurance industry has also pressed the reset button and has moved from the traditional way of selling insurance products to providing personalized insurance service to the customers. Remember, the modern customer is always on his phone. That is where businesses also need to be, so InsurTech is the future of insurance companies in Germany and across the Globe.
Mohit Tater 2020-09-15 12:35:12