Insuranceciooutlook

How Insurtech companies are dominating in APAC

Insurance CIO Outlook | Wednesday, June 22, 2022

According to the survey, there are at least 335 insurtech companies in the Asia-Pacific area

FREMONT, CA: Instead of unconventional players aiming to unseat incumbents, the Asia-Pacific region's insurtech market is dominated by less disruptive and more collaborative start-ups that complement current carriers, stated S&P Global Market Intelligence's analysis of the region's largest insurtech firms. According to the survey, digital marketplaces that drive business to existing carriers lead the sector, followed by tech suppliers that streamline incumbents' back-office operations. Analysts anticipate that as online intermediation becomes more competitive, investors will focus on less crowded and more profitable sectors, fueling the vendor model's growth.

Meanwhile, digital agents are the smallest segment in the industry. This market is made up of tech businesses that act as agents, selling policies with their own branding and cooperating with a limited number of carriers. According to the survey, there are at least 335 insurtech companies in the Asia-Pacific area. China and India, the sector's two major markets in the region, account for about half of these companies. Insurtech start-ups in these nations have also drawn 78 percent of investment in the sector; a statistic that analysts anticipate will continue to rise due to the vast and rapidly increasing insurance markets in these countries.

Southeast Asia is the third-largest market in the area, led by Singapore, which is home to more than half of the region's insurtech enterprises. Southeast Asia's other main markets are Indonesia, Malaysia, Thailand, and Vietnam. In the Asia-Pacific area, Australia, Hong Kong, and Japan are home to a number of prominent industry participants. Listed on the Hong Kong Stock Exchange ZhongAn is a digital-only insurtech startup established in Shanghai that creates ecosystem-oriented insurance products in a variety of domains, including business, domestic property, shipping, liability, and credit insurance. The company's core insurance system is run on Wujieshan, a cloud-based platform. Advanced AI capabilities have also been developed to boost risk management, swiftly optimize product features, and improve customer experience.

 

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