Insurtech: Driving insurance evolution
When talking about digital and technological innovations and opportunities, it is inevitable to talk about insurtech. insurtech refers to technological innovations that are created and implemented to improve the insurance industry. Often, these applications aim to achieve higher customer satisfaction and increased efficiency and flexibility.
The concept of insurtech can be interpreted very broadly. For simplicity's sake, we are going to divide the concept into two different categories in this article.
Streamlining processes: Automatic systems and AI
The first group concerns developing digital applications (software packages and AI Algorithms) that can be used by insurers with the aim of optimizing their insurance processes. In this way, they can achieve a more efficient turnaround time and score higher customer satisfaction. This can, for example, be done by developing a (partially) "automatic claims handling system" for the entire claims process. The partnership between the brokers and the insurer can also be made more efficient and sustainable.
One example is the Ghent-based startup WeGroup, which develops technology to make insurance brokers or bank agents work more efficiently. WeGroup was founded five years ago and created a virtual assistant named Louise. Using data and artificial intelligence, Louise is designed to help insurance brokers and bank agents work more efficiently and provide better service to customers. Several hundred insurance brokers and bank agents in Belgium are already using Louise.
Another young technology company in Ghent is Paperbox, which harnesses the power of artificial intelligence to automate the processing of emails and documents. Paperbox has developed a document intelligence platform that brings together all business documents into a single document data warehouse. The start-up aims to assist insurance companies in transforming their unstructured documents into actionable insights.
Insurtech's market share surge
In the second group, we defined insurtech companies that aim to increase their market share in the Belgian insurance market. On the one hand, you have the traditional insurers, who expand their core business by developing an innovative service or by creating digital tools to market their product in a new way.
A nice example is the spin-off ‘AG Health Partner’ which offers a Wellbeing as a Service (WaaS) solution. Via this digital solution, the aim is to support organizations in their efforts to enhance employee wellbeing. Another example is ‘Jaimy by Belfius’, an extra service where homeowners are connected with screened professionals for jobs or repairs around their house.
On the other hand, you have independent start-up companies that are direct competitors for traditional insurers. A good example of a Belgian insurtech is Qover, which can be seen as an embedded insurer as they offer insurance solely digitally. While the venture capital market seems to be dormant, Qover recently raised $30 million to fuel further growth. The Brussels-based player has been developing technology for about seven years that allows customers to create tailor-made insurance solutions. They specifically offer international insurance online. This allows companies operating in different countries, and consequently dealing with different legislation, to insure themselves with a single insurer. Their customers consist mainly of companies whose product offerings are mainly available through the Internet, such as Deliveroo and Revolut.
Another example is the French start-up Alan, which is considered one of the fastest-growing players in financial technology. It offers fully digital health insurance options for businesses. However, the company aims to be more than just an insurance provider. By introducing other digital applications related to healthcare, such as virtual doctor visits and coaching platforms for mental well-being, Alan positions itself as a kind of ‘super app’ for healthcare.
In the future, Insurtech will play a significant role in all insurance companies. Therefore, Trilations will keep an eye on this evolution and be sure to assist our clients where we can.
Do not hesitate to reach out if you are interested in knowing more about insurtech and our position on it.