Start-ups can help operators accelerate sales growth from affiliated insurance.
Affiliated insurance offers operators great opportunities to drive profits and grow new markets. Global revenue from affiliated auto, home and workplace insurance and allied services is expected to reach as much as $ 177 billion by 2023. affiliated insurance industry. As traditional insurance companies transform themselves into digital "living companies" that adapt quickly to meet the changing needs of customers, insurtechs can provide invaluable insight, technology and products.
Many insurtechs are already trusted partners who help carriers navigate challenges of digital interference and establish new connected revenue streams. New York insurtech Safe, for example, has recently teamed up with Chubb to provide demand hedging for passengers in sub-division services such as Uber and Lyft. Fellow New York firm Kinetic works with the special insurance company Argo Group to deliver its portable units to reduce work injuries at retailers and restaurants. Many more such partnerships are likely to be sealed this year.
Getting insurtech's on board can only be the driving force for large operators to start building long-term lucrative affiliated insurance companies. The enormous potential of affiliated insurance products is undoubtedly. However, revenues from such offers have so far been modest.
The affiliated automotive industry is the most mature affiliate insurance sector. Lots of carriers gather significant user data to help them improve risk management and pricing. Nevertheless, the value proposition for customers has changed a little. We are far from seeing extensive ecosystems that deliver a wide range of highly personalized integrated services, from insurers and other suppliers, who constantly adapt to changing circumstances. Connected insurance offers in the home and workplace fall even further.
In the next few weeks I will discuss how insurtechs can accelerate the development of the affiliated insurance market. I will look at some of the promising new car, home and commercial insurance markets. In particular, I will investigate how these companies aim to disrupt the insurance industry, which parts of the value chain they target and how existing can learn from them, and maybe work with them.
One of the most important forces in many insurtechs is their understanding of consumers. Our analysis of CB Insights data shows that approximately half of the insurance companies that received funding in 201
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The proportion of annual insurance offers that addresses each of the key areas of the insurance value chain.
Understanding and meeting customer needs, not just recognizing the potential for ever-better technology, will be crucial to the success of affiliated insurance offers. 19659003] Our research shows that many consumers are keen to get tied financial services that address specific aspects of their lifestyle. More than half, for example, are interested in complete household packages that combine insurance, repair services and tools such as water, electricity and prices. A similar proportion expressed interest in comprehensive care packages that include insurance, performance monitoring, maintenance and driver training. It was also a strong interest, 42 percent of respondents, in integrated home purchase services that include property searches, financing, insurance and legal services.
Much of the revenue growth from affiliated insurance comes from tied offers that try to satisfy the ever-growing consumer demand for comprehensive on-demand services. Insurtechs will probably be valuable allies that help the insurance companies to design, develop and deliver this new generation of insurance offers.
In my next blog post, I discuss some insurance that wants to interfere with the linked car insurance business.
Meanwhile read about the Top 10 Insurtech Deals of 2018 here.