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Hi there,
I once got into a heated debate with someone from the insurance space, and it over what it takes for a firm to count itself as an “insurtech” business.
He argued that many “insurtech” companies are merely making cosmetic changes – by setting up comparison sites, for instance – to the way people buy insurance plans.
True innovation has eluded the insurance sector for over two decades, he contended. While more insurance plans are being marketed online than before, these are largely for the same types of products.
Indeed, the pace of change in the industry remains glacial. Many consumers still prefer to purchase insurance from a licensed financial advisor since a lot of money is at stake. Partnering with an incumbent insurer that has the necessary regulatory and field expertise also means that an insurtech firm doesn’t have to assume any of the risks.
This is exactly why an emerging breed of “full-stack” insurance providers are attracting the attention of venture capital firms. One such company is Thailand-based Sunday, a firm that has links to Southeast Asia-focused KSK Insurance. Katrina goes into detail about Sunday in this week’s big story.
Like traditional insurers, these “full-stack” providers own an insurance license, can underwrite products themselves, and have the cash to fulfill claims. They can also tap into a rich data set from their existing customers to inform product design.
This makes them a rare and valuable breed indeed.
— Melissa
THE BIG STORY
1️⃣ Full-stack insurance is taking over SEA
Image credit: Timmy Loen
It may only be a matter of time as they are raising money, while traditional players are primed to compete. Plus, full-stack providers have a rare resource many insurtech companies lack, making them an attractive target for investors.
TRENDING NEWS
Check out Tech in Asia’s coverage of Asia’s fintech scene here.
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