What is InsurTech?
In the course of digitalisation, which was initially somewhat slower to arrive in the insurance industry, the sector-specific term "insurance" has developed in recent years. INSURTECH out. There is no official definition. This neologism is composed of Insurance (English insurance) and Technology and is an offspring of the FinTech scene that has already existed on the market for some time (e.g. PayPal). InsurTechs are technological companies that have focused on services within the insurance world. It is not uncommon for Big Data and AI to play an essential role in this context in order to offer innovative insurance products or services. The optimisation of insurance processes can also be a focus of InsurTechs.
Opportunities for insurance companies
InsurTechs can contribute to the Modernise the insurance industryby making formal Accelerate processes, new advisory methods or Innovative and more transparent insurance models develop. Stefan Wittmann, Director Life/Health Operations at Deutsche Rückversicherung AG, says at the InsurTech Conference 2019: "Collaboration with start-ups is extremely enriching; after all, InsurTechs can help the big players in insurance to become more agile, entrepreneurial and imaginative.”. InsurTechs offer enormous opportunities for better customer service, cost-saving potential and more efficiency, which means a clear competitive advantage. Digital solutions also convey the image of the innovative and contemporary insurance company to the outside world. In addition, the motto - prevention instead of cure - has not only arrived in the health market, but also shows its usefulness for the insurance industry. Risk prevention instead of risk management is coming more to the fore in the context of new digital product ideas.
Digital Touchpoints in InsurTech
Insurance-specific apps - such as YAS.life's white-label solution with the digital bonus program for health insurance companies - offer completely new ways to interact with policyholders and thus communicate relevant topics or content with them.
How does insurance work?
The basic idea of insurance is based on a solidarity principle "All for one": The risk of a claim is borne by the insurance community. Many insured persons pay insurance contributions (premiums), with the insurance company acting as the collection point. If the claim occurs for an insured person, he or she receives the agreed claim payment from the collective pot of premiums.
What is reinsurance
Reinsurance is insurance for an insurance or reinsurance company. This compensates for the underwriting risk of major claims. The symbiosis of reinsurers (actuarial know-how & financial support) and start-ups (100% digital orientation) can also produce disruptive solutions. For example, since 2017 YAS.life
and the German Reinsurance Company
work closely together to innovative insurance products