The insurtech (combination of, or insurance and technology) have already taken their first steps in Argentina and other markets in Latin America, with Brazil and Mexico leading the way.
This sector, as traditional as that of the banks, is moving towards a complete transformation throughout its entire value chain. Today, more than a dozen firms are already operating in the country and an exponential growth is expected in the next five years.
Basically, there are two types of companies: the insurers of always, which are taking a turn to adapt to the digital era and the new startups, which were born as technological.
The second are those that stand out more for their innovation and they are leading the way. Although they will modify the item considerably, it is also true that not all of them have the expertise of the "historical" ones.
Its value proposition is focused on the convenience of interacting digitally, remotely and in less time, with a better user experience. Unlike traditional companies, they concentrate their operations exclusively on electronic channels.100% digital
One of the cases of the use of new technologies in the sector is eColon.com, which started its activities in October 2017 with a virtual assistant that allowed to request an online policy through a text chat.In October of this year, "Julieta Bot" presented its version 2.0, becoming the first program in the world to offer online recruitment through voice recognition.
"A year ago, eColon started the path of innovation, becoming the first Argentine company to use Artificial Intelligence," says Eduardo Iglesias, founder and CEO of the insurtech, which offers coverage for motorcycles and homes throughout the country.
In tune with the new consumption habits, a few months ago, iúnigo was launched. It is promoted as the first 100% digital company in the country to buy car insurance and manage any operation directly from its mobile application. It belongs to the San Cristóbal Group.
"The first thing is immediacy, we know that people value their time and that is why, through iúnigo, they can take out the insurance in less than two minutes." The second is the digital experience, so we developed a proposal with the client in The center, that client is digital, is connected and can do everything from our app ", says Federico Malek, CEO of the brand new company, to iProUP.
iúnigo is characterized by offering a faster quote by scanning the QR code of the green card of the car or entering only the patent. The user can also show a preview of your vehicle from your cell phone, without the need to go to a workshop or wait for an expert. With the app you can take pictures of the car that will be judged by iúnigo from an intelligent digital system."We define ourselves as a technology company that has insurance services, in total we have 100 employees, of which half is dedicated to development and technology," explains Malek, who adds: "Today we are having 1,000 online quotes per day. and we calculate that we are going to end the year with a portfolio of 3,000 clients ".
By 2019, iúnigo plans to launch a service for the home and ondemand insurance. "It is a temporary coverage, when and where you want, this is what the technology we develop allows us to do and that is reflected in the customer satisfaction indexes, which are unusual for what the market is: almost 90 points", remarks the CEO of iúnigo.
Another innovative Argentine startup is SnapCar, which offers vehicle service through its app. By using the Internet of Things, it collects information from the driver and the car. According to how and how much you manage, the user will save up to 50% on their policy.Online and in minutesThe main barrier to the growth of the sector is bureaucracy and the traditional paperwork for contracting insurance. With the digital transformation, some alternatives appear to acquire online and in seconds a protection against personal accidents.
From La Caja seek to improve and simplify the experience of its customers. In this sense, Martín Centeno, manager of Digital Communication and Web, comments: "We noticed that, regardless of the insurance segment, the consumer has changed their way of interacting when making a purchase, a procedure or another service. deal with it in another way. "
"In the company we are traveling this road, towards a service that complements the warmth of face-to-face service with the convenience and ease of digital services, simplifying the experience of our customers," comments Centeno to iProUP.
And he emphasizes: "Within this context, we have great expectations of growth, always making a difference in our service to generate better experiences because our priority lies in the client".
MecubroSRL is an app that allows you to process temporary or personal accident insurance instantly and online. The platform works as a marketplace, where the user can choose the type of insurance (item), the number of people and the days of coverage. The cost is calculated and displayed in a transparent way, being able to request it instantly.What comes next
According to the reports and reports of the sector, between 2016 and 2018 the item has grown in attracting investments, clients and new ventures. "Global investments in Insurtech reached 985 million dollars in 2017," according to one of PwC's reports.
There are no figures available at the official level, but the truth is that the potential for growth is enormous. Is that, at least for now, only 11 companies have joined. Of that total, 50% can provide the benefit with less than 10 employees according to Accenture.It is expected that traditional insurers adapt their business models, that they will merge with startups and that new and more varied insurtechs will be born as they already exist in other countries.
Gonzalo Geijo, Commercial Director Latam of Charles Taylor InsureTech, tells iProUP that in order to adapt to this paradigm shift "it is extremely important that the traditional company propose a change of culture from its top management".
And he warns: "If this does not happen, it is very difficult for the organization to enter a world of innovation to face the new business paradigm."
Charles Taylor works regionally and globally with multiple insurers and brokers. "In both areas we have managed to accompany them in the process of business transformation and innovation through the use of technology, some at the regional level are AON and SURA, two players who are very active in Latin America," says Geijo.
The focus of Charles Taylor is to accompany insurers on the path of digital transformation, helping them understand what changes they have to generate to add value to their final customer.
Regarding how he sees the present and the future of insurtech in the country and in the region, the director affirms: "Although the road is just beginning, in Argentina it is growing in quantity and insurtechs and there are already multiple teams that are coming out. in the light with great ideas that are being adopted in the market ".
And complete: "The big challenge is to come to light because that requires not only the idea, but also to expose and position it in the right way and to people who have the vision to integrate them into an ecosystem of solutions."The challenge of regulationThis year the XIV Consultative Forum on regulation of microinsurance was held for the supervisory authorities and professionals of the sector and policy makers in the City of Buenos Aires. Its central axis was the regulatory challenges with the arrival of InsurTech.
On that occasion, Natalia Escobar, Senior Policy Advisor for Implementation and Evaluation of IAIS, explained: "The supervisor must be aware of the innovations in technology and at the same time be aware of what is needed to close the protection gap. and include more and more people in access to insurance products. "
Ekrem M. Sarper, of the National Association of Insurance Comisssioners (NAIC), says: "The challenge that regulators have is how we can balance this consumer of protections with the demand for innovation in a stable, competitive and mainly fair playing field. "
And he warned: "As supervisors we must stimulate innovation and find ways to modernize regulations to make them more effective."
On the other hand, iProUP consulted Juan Mazzini, SeniorAnalyst of Celent consultancy, who explains what should be done in regulatory matters.
"There is regulation that allows 'open banking' based on a data standard that requires institutions to make them available through an API (Application Programming Interface), which are like connectors to facilitate the flow of information between participants of an industry, the sector must evolve towards a similar regulation, "he explains.According to Mazzini, this will allow "the 'open insurance' and give a framework of experimentation or 'sandbox' regulatory industry." In addition, he stressed that "the regulator should invest in having more resources to be at the forefront to be able to discuss hand in hand with insurers how to incorporate technology into the business while maintaining the basic principles of regulation."
Everyone sees a challenging present with a lot to do. "But a bright future as long as we are not afraid of experimenting, of failing, of correcting in order to improve the lives of people and companies," says Mazzini, "without insurance, the world could not exist, with which it can be reconverted the industry or someone from the outside forces it to do it ".