For a long time, the fintech start-up scene took little interest in the seemingly sleepy world of insurance. Payments, foreign exchange and peer-to-peer lending grabbed the headlines, plus the funding. Nice overview of Insurtech. But over the past couple of years, all that has changed. Insurtech — or instech — is now attracting entrepreneurs and the investors that back them. “Quite a few entrepreneurs who have been in other areas of fintech have moved over to insurance,” says Matthew Wong of research company CB Insights.
The start-ups are targeting all parts of insurance. Many are focusing on distribution, using new technology to reach consumers that traditional insurers miss. Others are looking at analytics, helping insurers to use data to make better underwriting decisions. Blockchain — the technology that underpins bitcoin — is increasingly popular, while health insurance has been a big area of start-up activity in the US. Nor have start-ups ignored the potential of the “internet of things” — the growing use of data-collecting devices in everyday items, from cars using telematics systems to connected homes. Cuvva Activity: Cuvva takes a fresh approach to car insurance. While most insurers cover customers’ vehicles for a full year, Cuvva breaks it down into smaller chunks.