Santalucía Impulsa, the Santalucía Group's Open Innovation ecosystem, launches the primer Insurtech map of the insurance sector, prepared together with the newspaper El Referente. Technology and startups are key to innovation of insurers, since both represent the possibility of evolving and solving the challenges faced by the sector.
The future of insurtech in Spain
Insurance institutions' interest in the Insurtech ecosystem is increasing, as shown by data from investments in startups: 6.3 trillion worldwide between 2017 and 2019, investment of 31% in the period 2010-2019 and 56% in 2019, and 3.26 billion dollars invested during the year at the end of the third quarter of 2019. Las technologies What they get the most investment are cloud and mobile applications, followed by Big Data, Artificial Intelligence, Internet of Things, Blockchain and cybersecurity.
The strategic objectives that attract the most interest in traditional insurers are transformation and reinvention. Based on this vision and with the objective of providing a differential value proposition, Santalucía Impulsa was created in 2016. Since then, after more than 800 projects analyzed and 20 accelerated startups, the accelerator has emerged as a consolidated model in specialization with Insurtech.
Santalucía Impulsa has evolved since its inception, now having a “Corporate Venturing” strategy in which they are committed to launching challenges to startups and providing investment and financial support to those who validate their model with the Group, develop new business models through their intra-entrepreneurship program, and work at the Santalucía Impulsa LAB, the ideal place to establish synergies and collaborations with entrepreneurs and other players. That is the objective, establish liquid business relationships with other ecosystems where structures are becoming increasingly flexible and giving way to technological solutions that accelerate digital transformation.
Pablo Montoliu, Chief Information & Innovation Officer of Aon, predicts an increase in Insurtechs, since they improve the insurance value chain and still have a lot to offer to the Spanish market: they provide agility, freshness, innovation and technology. Collaboration between Insurtechs and Spanish corporations is necessary, especially because of the changes that are coming and the speed at which they are taking place. However, the insurance market in Spain has little digitalization and a limited size, so Insurtechs must be aware of this and patient.
In the open innovation program Aon Innovation Lab, challenges are launched to the Spanish innovative ecosystem and then the most appropriate ideas are selected to be developed together. After the tests, some of the pilots become projects, and eventually into new products or services, or new ways of doing the traditional. Sometimes, the company decides to bet on the equipment, solution and/or technology, and ends up acquiring the startup.
Óscar Paz de la Fuente, Head of AXA Opensurance, explains that, as the Insurtech ecosystem itself consolidates with key factors, new entrants will find a greater number of opportunities to validate and scale their business models to become profitable and consolidated models. Startups in the Insurtech sector in Spain will evolve under two predominant categories: distribution and health.
At AXA, they have several lines of collaboration and relationship with startups. On the one hand, personalized insurance is designed for them, since the new business models they pose entail associated risks. In this way, the confidence of new users is increased and a requirement that is increasingly requested by investors is met. On the other hand, they celebrate #Insurtechtalk to promote dissemination and awareness of the opportunity that the Insurtech movement represents for all the agents involved.
COVID-19 impacts insurtechs
As in other economic areas, the insurance sector has been attacked by COVID-19, although in a less intense way than in other sectors. However, there will be consequences, as indicated in the last report COVID-19, Impact and Prospects for Insurance, published by the entity Community of Insurance, which also assures that, since the beginning, insurance companies, technology companies and brokers with an international presence have acted in an exemplary way, both internationally and locally.
The main measures taken by insurance companies have been those of teleworking, which is accelerating flexible forms of work and a cultural change towards a new way of working, with a focus on objectives and reconciliation. In addition, the crisis has generated the need for training for employees in new processes, routines, tools and functions based on technology, which is being carried out through platforms, virtual classrooms, webinars and tutoring with experts.
In addition, one of the conclusions addressed in the report is the indispensable role of Artificial Intelligence in solving simple queries and freeing up customer service centers, which have been overwhelmed by the crisis due to a massive demand for inquiries, so that they can dedicate more time to complex advice with more added value.
Reaction in record time in the insurance sector
The Insurtech sector's rapid reaction to the wave of COVID-19 has been successful: the digital transformation process has accelerated a lot and its importance has been demonstrated.
La technology is a key pillar in the entire process. It has allowed operations to be carried out with videoperitation systems; it makes telemedicine and telemedicine possible, which are here to stay; it makes digitization in subscriptions, supplements, charges, etc. more possible than ever; and Smart contracts and blockchain make reliability, transparency and security greater.
See the full report and startups at: The future of the Insurtech sector in Spain
