Emerging Carrier and Distributors Accelerating the Growth of InsurTech

Emerging Carrier and Distributors Accelerating the Growth of InsurTech

Insurtechs with knowledge of a clear path to scale will be poised to become industry leaders and accelerate profitable growth fast. Using emerging carriers and distributors is one such important strategy that is assisting the insurtech sectors.

FREMONT, CA: Tech-driven innovations with capabilities including telematics, artificial intelligence, machine learning, and automation have revolutionised almost every sector of the insurance value chain. They are continuing to improve omnichannel experiences for consumers. Insurtech is the driving force behind this transformation.

The increasing amount of capital influx into the insurtech market has brought significant pressure on insurtech to scale rapidly. As a result, few insurtech companies have chosen to collaborate, while others have opted to remain independent. The method to boost growth depends on the type of insurtech player. Selecting an accurate path to accelerate profitability is necessary for insurtech businesses to escalate scale.

Emerging Carriers and Distributors

Emerging Carriers and distributors are B2C startups, usually, digital-native brands, looking to disrupt the way insurance is bought and priced. They need to create a path to profitability, prepare a precise investor story, and refresh their strategies to enhance the growth trajectory and challenge incumbents to scale successfully.

Driving Profitability

The greatest obstacle for insurtech, after raising capital and acquiring customers, is driving a path to profitability. At this phase, insurtech companies usually observe difficulties scaling their initial unit economies. They can, however, successfully enter new revenue generation opportunities in search of accelerating profits after establishing distinguished technologies and processes in their core markets.

Improving the Investor Story

Earlier, insurtech companies faced several challenges in performing better in public markets. Investors are often uncertain while assessing these emerging insurtech brands as insurers or tech companies. They are also unsure about the time required for insurtechs to gain profitability, which is a cause of concern. When share prices and initial growth expectations come under pressure, there is a requirement to renew the investor story. As a significant factor, insurtechs, which have seen less IPO activity, must lead with a clear and compelling investor story. This involves developing an initial hypothesis, amassing data-driven proofs from operations and financials, and training management to accurately articulate the story to investors. If it is carried out successfully, this process can help an insurtech achieve clarity and alignment on the strategic path forward, along with building investor and shareholder trust.

Refreshing the Strategy

Insurtech companies will focus on new and attractive segments and locations that can open to next-horizon growth opportunities after achieving scale in their core markets. At this point, they are highly required to refresh strategies by using analytical rigour and external perspectives. They should develop a roadmap for an aspiring growth route and find a clear set of enablers and opportunities to accomplish these targets. A successful insurtech company will have precise knowledge of their field and the potential to win in particular customer subsegments. Such successful strategies can be later applied to different regions and derive growth on a global scale.

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