8 July 2019 11:30
At the global scale, investments in venture capital in the insurance technology have surpassed the 9 billion us dollar (US$ billion), more than 1000 startups. Only in 2018, some 204 projects have been used to raise capital totalling$ 2.6 billion USD. There is no slowdown in this regard.
These data were revealed at a conference in InsurTech Quebec, which took place last April and to which three experts of the firm of Deloitte participated.
Note that the size of the investment is reduced, because of the amounts relatively similar invested in 2015 (2,69 US$ billion), only 124 companies had been financed. “This is why we talk of the second wave, because from now on, investments are made more rationally, with better focused,” says Mukul Ahuja, leading strategic in Omnia I, the division in artificial intelligence at Deloitte.
Imitate the user-friendliness
The new companies in the sector of the assurtech have shown their ability to mimic the user-friendliness of the platforms of the major firms of the Silicon Valley in order to improve the consumers ‘ experience. Their efforts in innovation have a decisive influence on the investments made by the insurers existing, which are facing the new demands of their customers.
However, the new players have overestimated the willingness of consumers to switch insurers existing. In addition, in certain segments, the emergence of new players is very difficult as the competition is already fierce.
Nevertheless, new players are multiplying. At the end of 2018, Deloitte were 1 516 assurtechs, 46 of which are in Canada. The country, the new players are mainly in digital distribution, automation of processes and analysis of data.