Page 35 - Insurance Times August 2019

INSURTECH:

THE

UNCHARTERED

POTENTIAL

ABSTRACT
Insurance is a means of protection against a financial risk that could occur against a contingent or an uncertain
eventuality. The insurance sector in India works on a mainstream business model that includes risk pricing, huge capital
requirements as well as customer retention strategies. The incumbents in the business have been hesitant to changing
or modifying their business models which has given a window of opportunity to the insurtech startups. Hence this has
led to a surge in the number of evolving Insurtech startups which are constantly focusing on integrating technology
into the business.
With the advent of technology in the Finance sector (FinTech), the sector was largely disrupted by new technological
tools like Big Data Analytics, Machine learning and Blockchain. A similar potential is contained in the insurance
landscape as well. The insurtech startups have been aligning themselves towards technology to tap some new channels,
consumer segments and innovative provision of services. They are also trying to personalize the insurance policies by
analyzing consumer behavior and lifestyles and certain patterns that are significant in determining the premiums to
be paid by the consumers. This paper broadly discusses the types of technologies that can be adopted and used by
the Insurtech startups, types of physical tools like wearables, telematics etc. that can be used for developing patterns
and trends and the way ahead for the insurtech startups and the incumbents.

About the author Literature Review
In 2016, a research was conducted by Volosovich Svetlana,
Tej Rajani Professor, Doctor of Economics, Professor of Finance at Kyiv
Jamnalal Bajaj Institute of Management Studies National University of Trade and Economics. The research
Mumbai, India covered a broad overview on what are the key challenges

The Insurance Times, August 2019 35