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October 7, 2021

Insurtech trends

Access to significant capital is fueling an insurtech innovation boom

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What: With around 50% of customers willing to consider coverage from new insurers, the recent influx of capital for insurtech startups represents a real challenge for traditional insurers. Name recognition is becoming less impactful, while at the same time digital offerings, proximity, and convenience are becoming more important considerations for consumers. 

Why it matters: Name recognition in insurance has been diminishing in value, and with this shift there will be a renewed focus on specialization in insurance for all types of insurers. Successful companies will shift their lead acquisition strategies away from big media buys, and move to an ultra-targeted marketing strategy with customized brands for different industry niches.  

Read: World InsurTech Report 2021 – Capgemini Worldwide

Blockchain

Blockchain is opening up new insurance markets in developing countries

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What: One significant challenge facing developing countries is a lack of stability and trust, which makes financial tools like insurance a lot harder to operate. Developing countries are now seeking to leverage the programmatic trust inherent in blockchains to gain access to financial services and insurance. 

Why it matters: Less regulation and the lack of alternatives make developing countries ideal for blockchain-based insurance products. Much as developing countries skipped landlines and moved straight to cell phones, they’re prepared to skip the current insurance model of many developed countries and move straight to blockchain-powered insurance. 

Read: The Rise of Blockchain Technology and How It Is Helping Insurance Adapt In Developing Countries – Niraz Buhari

Blockchain

Blockchain currencies banned by China

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What: China has issued a statement that all cryptocurrencies are now illegal, resulting in major exchanges preparing to cease trading in China. 

Why it matters: With a highly regulated and restricted financial system, crypto offered a unique investment opportunity for the Chinese people; around 70% of Bitcoin mining was happening in China. With this ban, however, crypto is facing a real challenge and it will be interesting to watch how the market adapts. 

Read: China deems all cryptocurrency transactions illegal

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