Everything in the world changes rapidly and nothing is ever the same. Especially in the field of technology changes take place at an incredible speed. The digital era is increasing the architecture and infrastructure of not only our everyday lives which has become much easier and also the way many sectors operate.
At this point, I would like to talk about a concept that will provide revolutionary projects in the insurance sector. InsurTech enables further innovation to our lives by combining it with technology.
It is a system with unlimited opportunities that helps insurers (insurance companies, agencies, brokers, banks) and the policy owners to minimize the risks, and provides innovative technologies, development of high tech, mentoring, funding, framework, material and moral support.
Insurance companies evaluate some factors such as age and model of the car, driver’s details, occupation, age, conviction and claims history. With the Internet of Things applications InsurTech contributes development to the industry by supporting your insurance needs so that it provides you more accurate insurance policy by using information about you and your vehicle analysis to identify and minimize risks.
The aim of insurers is to provide full insurance services to meet the needs of the customers and cover their risks. For the growth and development of the sector, insurance companies now have to offer innovative and complete services to stay competitive.
Innovative entrepreneurs can provide great benefits in the development of the insurance industry if they are properly modeled with InsurTech. They can focus in the global arena, and increase their corporate value to millions of dollars.
Countries making the biggest leap with InsurTech in the world are the USA, UK, Germany and Netherlands. These startups, supported by the government and leading insurance companies, deliver a high volume of work. Even reinsurance companies are into InsurTech venture.
For example; Insurtech firm Trov, which operates in the UK with the support of Axa, one of the world’s leading insurance companies offers personal property insurance for camera, computer, phone and etc. Scott Walchek, CEO of Trov, provides services over smartphones, said: “ we measure up the risk constantly. You pay only for the period of time you get services”. The Trov company has been operating in Australia for the last 5 years and has been active in the UK and plans to put it into service in the US this year.
Another example is the Lemonade. It has been receiving the highest funding support from US investment companies in the field of insurance so far. The system, which offers quotes on average of thirty seconds, is committed to paying claims in three minutes. Lemonade benefits from artificial intelligence and digital technology. Lemonade customers need only to communicate with chat boots to reach their best individual insurance offer. Chat boots receive the necessary information and offer insurance options for the customers. The customer who finds the appropriate offer can sign up with the credit card and mobile signature and buy the policy.
Or Bought by Many; the company will enter areas where large insurance companies have never been interested in such as cancer patients who are on the healing stage can buy travel insurance. This company has raised 12.5 million pounds from investors.
InsurTech start-ups do not only have a user-friendly approach but also a close relationship with the policy owner for risk prevention, warning and guidance services so that they prevent damages that the insurance companies suffer from and offer a service where the customers are safe in any condition. Developed start-ups are aiming to detect and control risks that may arise through intelligent devices in areas such as accident, health, fire etc.
Another concept that will be launched with InsurTech, which is mentioned in the market recently in many countries, is Blockchain (block chain). Blockchain digital account book, which aims to bring customers and intermediaries together on a common platform, is a database that allows users to control transactions without being tied to an institution. By ensuring that transactions are carried out reliably and transparently, it creates a more effective and productive process. It minimises the cost and complexity of the transactions that companies make with documents and other companies, thus enabling quick processing. Incoming requests also pass through an automatic filter on the Blockchain infrastructure, allowing smart contracts to be created. Blockchain technology can be used in areas such as supply chain, product lifecycle, secure data storage, transparent data sharing so that all technology companies, entrepreneurs and governments around the world have attracted with the idea.
Fintech and InsurTech initiatives are expected to increase the effectiveness of Blockchain technology, which is anticipated to become increasingly common in the market, and prevent scam and fraud. Over time, the blockchain, whose value will become more understandable is thought to help value-added products and services to emerge in many areas.
InsurTech, the future of the insurance industry, will take the lead. We are on the verge of a period in which innovations will enter our lives more and more, while the number of such solutions technologically increases every day in the world. If you have a project with a high potential for success which is new or applicable to the one in the market to produce better, you can improve it very quickly with InsurTech. In the world, 47 percent of InsurTech investments are actualized in the core and angel investment phase. If you have the necessary qualifications to be in a certain spot in the insurance industry, you can find an angel investor for your project, or even investors will find you before you look for them.
There is so much that can be done for the Insurance Sector. A little courage, a little motivation and plenty of technology and creativity by determining the goal and working towards that goal is the secret of global growth and success. As long as we create such initiatives and draw the attention of angel investors, the insurance sector will become the most robust part that will stimulate the country’s economy, as is the case in the world.
InsurTech stayed behind FinTech (financial technology) for years in many countries. The “FinTech” Platforms, which were established to gather and expand the financial technology ecosystem under the same roof, are a good example for InsurTech.
Insurance technology, one of FinTech’s vertical sectors, grew 25 percent in the last year. There are around 1,400 companies worldwide that work solely on insurance technology products and solutions. Approximately 300 companies entered into the sector in 2015. Although this figure dropped to 180 in 2016, there was still an increase in the number of contracts: 54 in 2014, 125 in 2015 and 157 in 2016.
In a nutshell, we have to create new data and examine it, and produce creative and innovative solutions in the light of information and data we already have in the digital era.
We as AcerPro, have been supporting the insurance sector with the projects and innovative software solutions we have developed in banking and insurance sector Following developments in the world closely, we have been there to help our country, insurance companies, banks, brokers and agents to catch the latest trends. Our experience that comes to a level that sheds light on many countries and we have started to produce projects in banking and digital insurance fields in Switzerland where we have an office now.
Our goal is to be the software company that produces the world’s largest digital insurance platforms. To achieve this goal, we are developing InsurTech applications with a vision to be the pioneer with a distinctive presence in the marketplace of UK, USA, Middle East but with special focus on Turkey, Switzerland and Pakistan.
If you have current start-up ideas or projects in this regard, you can communicate with us, acquaint yourself to our other channels progressively advancing and add value to the world, insurance sector and our company.
Human and technology investments are the most valuable ones that will ensure your company to survive in the future.
Chairman of the Board
AcerPro Bilişim Teknolojileri A.Ş.