Page 24 - The Insurance Times February 2025

Insurtech

Why Telcos Should

Consider Partnering

with Insurtech

Companies to Offer Aman Pal Singh

NED, Founder & CEO
Insurance Products B4E Insurtech Inc

The telecommunications industry is undergoing rapid transformation, driven by technological
advancements and evolving consumer demands. As the industry adapts, a significant opportunity
lies in partnering with Insurtech companies to offer innovative insurance products.

T he telecommunications industry is undergoing isting resources to tap into the potential of insurance, while
rapid transformation, driven by technological ad-
leveraging the innovations brought by Insurtech companies?
vancements and evolving consumer demands. As
the industry adapts, a significant opportunity lies
in partnering with Insurtech companies to offer innovative Market Potential
insurance products. This article investigates the rationale The global telecommunication insurance market, valued at
$8.5 billion in 2021, is projected to reach $41.6 billion by
behind such partnerships, highlighting the business benefits,
2031, growing at a compound annual growth rate (CAGR)
market potential, and strategic advantages that telecom
companies (telcos) stand to gain by collaborating with of 17.5%. This growth is driven by increased demand for
Insurtech companies. insurance products, particularly in areas such as business
interruptions, cyber threats, and liability exposures.
Telecommunications companies (telcos) have traditionally
focused on providing connectivity and communication ser- The COVID-19 pandemic further accelerated the trend of
vices. However, with the increasing convergence of tech- digital transformation, making insurance services more ac-
nology and financial services, telcos are uniquely positioned cessible and relevant. With a global customer base, telcos
to diversify their portfolios and capture new revenue are ideally positioned to capitalize on this surge in demand
streams. By partnering with Insurtech companies, telcos can by offering new insurance products. This growth trajectory
tap into the burgeoning insurance market, leveraging their is particularly evident in regions like Asia-Pacific, the Middle
existing infrastructure, customer data, and distribution chan- East, and Africa, where there is significant untapped poten-
nels to offer a wide range of tailored insurance products that tial for insurers and telcos alike to serve underserved popu-
address both consumer and business needs. lations.

The key question is: How can telcos capitalize on their ex- Telcos already possess a wealth of data, relationships, and

22 February 2025 The Insurance Times