Insurtech – Digitally Transforming the Insurance Industry along with Providing Investment Opportunities in the Market

With the growing digital edge, the insurance and finance industries are observing rapid changes and are more inclined to digital growth. The insurtech market is growing expeditiously and seems to be quite promising, thus driving more and more investors toward itself. The insurtech industry continues to receive funding from various market players and new investors as the industry have tons of ventures looking for funding.

As the insurtech companies develop and validate their business models, the global investors are fueling the mega-round events by investing in growing and promising market players. Octamile has successfully raised $500,000 in pre-seed funding round recently and plans to improve insurance experience with easy access and reducing disharmony by joining forces with AXAMansard, FirstBank and partnering with other startups and insurers. Octamile is more focused on partnering with every sector of the insurance industry and it enables non- insurance businesses to offer insurance as a feature in their existing products with its digital insurance solutions.

The Demex group, a Washington, DC based an insurtech company that targets climate-related risks, raised $9,000,000 in Series A funding. The Demex group happens to serve clients looking for unaided protection against climate-related financial risks. It delivers stable and expandable climate resiliency platforms, which then the insurance carrier partners sink with their live product and applications. This unique integration detects real-time pricing at the property address level across client networks with climate intelligence. This is how Demex’s platform assists in managing weather and climate risks and becomes important for risk managers in every sector.

Here, it’s worth mentioning that the uncertain situation due to Covid-19 had increased awareness of insurance and investments among individuals. While the companies and customers are expecting the insurance community to support their empowering digital behavior, they are also prompting the market leaders to make rapid technological advancements. According to the Allied market research’s published report, by 2030 the global insurtech market is estimated to grow at a significant CAGR from 2021 to 2030.

With the recent innovations, embedded insurance (insurance coverage bundled into a product or service and invoiced during the sale) represents insurtech’s future very well and the market players are also adopting strategic partnerships with a vision of growth in market sectors.

Obsidian announced a partnership with Steadily, a Texas-based insurtech specializing landlord insurance. Their new program will provide insurance options that will allow landlords to obtain quick insurance estimates online.

Chile-based insurtech startup Betterfly has joined hands with Chubb Ltd., the Zurich-based insurance giant to serve and expand in the Latin American market. These companies will begin with life insurance and later will expand into home coverage, hospitalization and other products.

Heritage announced partnership with Slide, a recently launched insurtech company and looks forward to improve the property and casualty insurance business with new technology. Heritage perceives the collaboration as a chance to capitalize on excellent agency relationships by generating commissions on policies that don’t generally match its underwriting criteria.

Insurtech startups are flourishing and helping the insurance industry and are the most preferred option for companies to keep up with their competition. As the insurtech market grows, it seems to be one of the best investment opportunities with potential returns and growth.

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