Insurers in emerging markets are introducing innovative solutions faster than their peers in more developed insurance markets as advances in Insurtech make it easier, quicker and cheaper for them to accurately assess customer behavior, needs and risks, thereby opening the door to new business models.
Developed in collaboration with CB Insights, the report revealed how China’ booming e-commerce is giving rise to new insurance products to meet demand for coverage on risks associated with online purchases. An example would be free-return insurance that helps retailers to increase sales by providing additional security to consumers via free shipping for product returns. Some even allow buyers with good credit to receive refunds immediately, instead of when returned items are received by merchants. This shows how data can transfer to credit, build trust, innovate insurance models and ultimately facilitate business. The report also noted that technology-based new entrants to the insurance industry now compete with traditional players by offering a more tailored and comprehensive range of products from a variety of carriers to a larger target market than insurers distributing traditional products through captive agency and bancassurance channels.