INSURTECH DISRUPTORS: Here's exactly what full-stack insurtechs are doing to beat incumbents on customer acquisition, personalization, and claims processing
- This is a preview of the Insurtech Disruptors research report from Business Insider Intelligence.
- Purchase this report.
- Business Insider Intelligence offers even more fintech coverage with Fintech Pro. Subscribe today to receive industry-changing finance news and analysis to your inbox.
Insurtechs globally are challenging the status quo of the insurance industry. By using new technologies, including machine learning (ML) and AI, they're overhauling conventional processes of the insurance value chain to increase efficiency and enhance the customer experience.
There are two types of customer-facing insurtechs: managing general agents (MGAs) that team up with licensed insurers and leverage their authorization to sell policies, and full-stack insurtechs that operate using their own insurance license. The latter are competing head on with incumbent insurers as they own the whole value chain, including claims management and underwriting, and don't have to share their revenue with an insurance partner.
Full-stack insurtechs were able to secure large funding rounds in the past few years and made up over half of the overall insurtech funding total in the US during the first nine months of 2018, per S&P Global. With the help of big capital injections, these companies have been able to grow their businesses and dip into the market share of incumbent insurers. Over time, they will further develop their underwriting abilities and personalize their policies - making them even bigger threats to incumbents.
In the Insurtech Disruptor report, Business Insider Intelligence examines why full-stack insurtechs pose the biggest threat to incumbent insurers and how this threat will grow over time. Additionally, we profile five full-stack insurtechs - Metromile, Root, Oscar Health, Lemonade, and Next Insurance - and evaluate their offerings in terms of the onboarding process, underwriting and pricing, and claims management, as well as provide insights into what the future will hold for the insurance industry.
The companies mentioned in this report are: Clover Health, Kin Insurance, Lemonade, Metromile, Neos, Next Insurance, Oscar Health, Root, UnitedHealthcare.
Here are some of the key takeaways from the report:
- Full-stack insurtechs are fully licensed insurance companies that are regulated by supervisory authorities such as the Financial Conduct Authority in the UK, making them fully responsible for meeting regulatory requirements, including holding capital reserves.
- While incumbent insurers have been slow to adopt new technologies and are behind other financial institutions when it comes to digital transformation, full-stack insurtechs offer personalized insurance policies and a smooth customer experience with the help of emerging technology.
- And even though full-stack insurtechs are still in the early stages of development, they're now looking to scale their businesses, threatening incumbent insurers' market share across geographies.
- Over time, and as full-stack insurtechs continue to scoop up large funding rounds, we'll likely see more players that previously operated as MGAs turn toward this business model.
In full, the report:
- Explains how full-stack insurtechs are a threat to incumbent insurers, and how this threat will grow over time.
- Details the business models of five prominent full-stack insurtechs.
- Outlines how full-stack insurtechs will help shape the insurance industry.
Interested in getting the full report? Here's how to get access:
- Purchase & download the full report from our research store. >> Purchase & Download Now
- Sign up for Fintech Pro, Business Insider Intelligence's expert product suite tailored for today's (and tomorrow's) decision-makers in the financial services industry, delivered to your inbox 6x a week. >> Get Started
- Join thousands of top companies worldwide who trust Business Insider Intelligence for their competitive research needs. >> Inquire About Our Enterprise Memberships
- Current subscribers can read the report here.
- 'Quiet quitting' is a bad idea, experts say. Here are 6 things you can do instead to get the same results if you're looking for better work-life balance – or to lighten your workload
- Airtel 5G launched in eight cities, entire country to be covered by 2024
- This pioneering regional OTT has turned profitable in 5 years – here’s how
- Freshers feel the heat as IT majors put onboarding on indefinite hold
- Musk again offers to buy Twitter for $54.20 a share: Report
- Competition Commission gives conditional approval to Sony-Zee merger deal
- Omnichannel becomes omniscient as retailers gear up for revenge festive celebration
- Redmi Pad Review: A decent tablet for the masses
- Tata Tiago Electric Car
- HCL Tech
- World Heart Day 2022
- Apple Tablets in Amazon Sale
- RBI Repo Rate
- Akash Ambani
- Amazon festival Sale
- Upcoming new Mobile in October
- Amazon Festival Sale
- Best Companies for Work
- India's Richest People
- RBI Interest Rate hike
- Upcoming Smartphone in 2022
- Top 10 Colleges in India
- Top 10 Airlines in World