Berlin, November 2nd, 2023 - The latest economic and global developments have presented the insurance industry with a variety of challenges. However, advancing digitalization, changing customer preferences and increasing regulatory complexity are opening up new opportunities for InsurTechs. One possibility: working together on innovative solutions.
The insurance industry is facing significant disruption, driven by technological advances and changing customer needs. The cooperation between InsurTech companies opens up access to innovative ideas, technologies, and solutions that might not be available to those that that are not inclined to collaborate. This synergies continually promote innovation and the further development of the industry.
InsurTechs can use synergies by overcoming challenges together, while sharing technology platforms and data sources increases efficiency and reduces development costs. At the same time, extensive data sets from different providers can be combined to provide more in-depth and privacy-compliant insights into risks and customer behavior, resulting in more accurate premiums and better insurance packages. Best practices and experiences can be shared to meet regulatory requirements and ensure compliance.
An example of how such synergies can be used efficiently is shown by the collaboration between hepster and ELEMENT Insurance. The MGA model practiced by hepster illustrates the advantages of such collaborations. hepster acts as product and process owner and takes over all product functions, while ELEMENT Insurance acts as risk carrier. This clear division at the level of the supply chain elements enables an even distribution of resources and shows how such collaboration is possible successfully.
Customers increasingly expect personalized and user-friendly insurance solutions. Through these collaborations between different insurance players, customer needs can be better understood and met by developing tailored offerings, such as self-service functions for contract management and efficient claims settlement. The future of InsurTech collaborations will be shaped by technological innovations, regulatory developments and customer preferences. Companies that are flexible and open to collaboration will be better positioned to capitalize on the opportunities presented in this rapidly evolving industry:
- Data sharing and analysis for better insights into risks and customer behavior - all in compliance with data protection regulations
- Transparency and efficiency in the insurance process as well as automated claims processing
- More accurate risk assessments, personalized rates and customer understanding
- Partnerships with fintechs and combined products with financial services
- Faster expansion into international markets through local partnerships for market adaptation
- Creating platforms for diverse financial services to improve customer experience and loyalty
- Expanding the product line to include electronic insurance, including leasing, circular economy, renting, sharing and financial services
- Accelerated response and adaptation to end customer & partner needs
Collaboration between InsurTechs offers immense opportunities that make us stronger in the fast-moving insurance industry. Instead of exhausting ourselves in competition, we can advance the industry through partnership approaches and create innovation together that will shape the market move forward, and ultimately benefit our customers.Laura Kauther, Commercial Director of ELEMENT Insurance
Those who help each other increase their chances of growth. Market trends can be identified and served quickly, which represents a clear competitive advantage. It is entirely possible that InsurTechs will take over smaller insurers operationally in the near future and realign them to jointly meet the changing needs of the market. These developments make it clear that the future of the InsurTech industry will be significantly shaped by cooperative approaches.Hanna Bachmann, CRO and co-founder of hepster
ELEMENT Insurance AG is the leader in the seamless delivery of insurance for its partners in Europe. The 100% cloud based InsurTech is licensed by the Federal Financial Supervisory Authority (BaFin) as a primary insurer for property and casualty insurance, while being able to operate as a risk carrier in all EU countries. As a digital icompany, ELEMENT can create innovative insurance solutions quickly, flexibly, reliably and efficiently along the entire B2B2X value chain in the European market. The combination of insurance and technology expertise makes ELEMENT a pioneer of digitization in the insurance industry.
The Rostock-based InsurTech hepster was founded in 2016 and offers an API-driven ecosystem that enables companies in all industries to integrate needs-based and individual insurance into their offerings. Using the embedded insurance approach, hepster creates the best experience in the field of insurance for its customers and partners. The InsurTech's portfolio includes mobility, electronics, equipment, travel, animal and accident insurance. Since 2017, hepster has already impressed over 2,500 partners and more than 250,000 customers with over 500 tailor-made insurance products. Hepster has received more than 15 awards for its excellent customer service and insurance services, including from TÜV Saarland and well-known magazines. hepster now operates in Germany and Austria, and since spring 2022 also in France.