What is Insurtech? | Reshaping Insurance

Insurance. Probably one of the biggest costs that comes out our monthly budgets but also comes in handy when overcome with an unfortunate event. How can Fintech startups take advantage of this innovation innovative and design it so that it could be beneficial to MSMEs? And how do we develop regulation such as the protection of information by the current Insuretech startups?

Share your thoughts about the topic in the comments section.

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[kabelotshotlhang]

Majority Insurtech are addressing uncertainty through underwriting and reinsure their products with traditional insurance. So insurance risk still lies with traditional insurance companies.  
Development of Data protection:
The South Africa regulators have set up Intergovernmental Fintech working group and regulation sandboxes were innovators experiment and regulators develop regulations for Fintech companies. The amendment of Popi Act is good step to develop strong data protection regulation. The amendment of POPI act which requires companies to have roadmap about acquisition, storage, maintenance and use customers data.
I would recommend regulators to look at GDPR data privacy regulation pros and cons (European Union regulation) when developing data privacy.

[kabelotshotlhang]

Interesting perspective. Insurance is tool MSMEs and gig workers can use to have a safety net and absorb financial shock. Covid-19 highlighted that there is a lack of safety net for gig workers and MSMEs.
In addition to ways you mentioned how Insurtech achieve to offer affordable insurance, Insurtechs are using peer to peer insurance model as way to offer affordable and fair insurance products. This model enables group of individual pool their premiums together to insure against risk. This model also removes the conflict of interest inherent in all insurance products, by returning all unused premiums back to consumer at end of year and offering fair insurance to customer as they not incentivise not pay claims. In South Africa, Pineapple and naked insurance using peer to peer insurance mode

[kabelotshotlhang]

There is an immense opportunity to use Alternative credit/underwriting model, IoT and big data to design tailored and affordable insurance for gig workers and MSMEs. Insurtech need to explore gig workers and MSME tailored insurance products protect MSME owners/self employed and their business risks/assets. For example, Insurance product that covers MSME business interruption, income protection, commercial loss and business assurance (Key person assurance). You can check out Lumkani, Constantia insurance and Simply insurance who currently offering MSME insurance products.  
Lumkani using Internet of Things and fire alarm device to offer funeral & fire insurance cover to informal settlement and township business & Individuals. The fire insurance cover business premises and all belongings/stock up R40 000. The premium starts at R60pm.
Simply insurance using big data and alternative underwriting model to offer MSME group life cover for MSME employees and domestic worker life insurance. One of their partner is SweepSouth.

[mcanthonyezeh]

Will Copywriter's or Copywriting be needed in Insurtech?