The tech scene in Southeast Asia is surging. From new startups to established players, the region is seeing exponential growth in the area of technological advancement. One sector and country that could benefit from this particular surge is insurtech in Thailand. Insurance startups have begun to realise just how important it is to adapt to the changing times, and with this evolution comes an updated version of offering insurance and how it functions.

Although insurtech is battling a stagnant insurance market, the room for opportunity is vast. Globally the market is likely to grow by 16% from 2018 until 2023 rising in value to around $1.1 billion USD. With Thailand’s insurance sector being the 8th largest in Asia with an expected growth rate of 5.5%, it’s no surprise that the market is heating up in the region.

Considering traditional providers are showing gaps in their protection and lack certain advantages that adopting insurtech models could bring, entrepreneurs and key stakeholders looking to tap into the billion-dollar industry could very well change the face of insurance.

Is insurtech the best option?

Many companies have disrupted the traditional model as they implement new insurtech innovations with some believing that the insurance industry is long overdue a shakeup. Global technological advancements and the implementation of digital trends like big data collection and consumer customisation are leading to a spike in people signing up for protection plans.

Insurance’s target market is generally people with the financial means to supplement their safety in all areas, but insurtech is stepping up to change that in an attempt to draw in more customers and thus, more profit. 

Another issue with the current insurance model is the assessment portion that puts people into groups of particular premium sets. This is all good and well when it comes to profiting on premiums, but it doesn’t actuate a personalised approach and garner proper safety analysis for future consumers. Insurtech aims to upgrade the way businesses approach and price premiums based on hefty data collection and analysis based on specific pre-sets, depending on the type of insurance and other factors.

For example, data obtained from a person’s vehicle about how much they drive and how safely, can be used to calculate car insurance premiums. Similarly, data taken from health devices, such as wearable trackers, can be used to calculate life or other health insurances in a more personalised way. Artificial intelligence (AI) can also help manage tasks for brokers and ultimately assist in creating the perfect coverage plan for consumers. 

An untapped industry worth billions

From 2019 to 2020, non-life insurance saw a considerable decline, but this particular niche is forecasted to grow year over year by about 4.1% from 2020 to 2024. This growth is mainly due to the onset of the current COVID-19 pandemic, but it won’t reach the same peak as it did in 2019. 

Key players in the insurtech game

Both established companies and new startups are digitalising their models. The insurtech startup Sunday recently announced that it has raised $9 million USD in a pre-series B round of funding with SCB 10X. This joint venture comes under The Moonshot Mission, a campaign designed to encourage tech innovation and investor attention.

Another emerging player in the insurance sector is Anywhere 2 go. They are aiming to “revolutionise” the motor insurance industry in Southeast Asia by implementing insurtech into their models. FWD General Insurance has also launched in Thailand amid the insurtech surge to take advantage of the growing value of non-life insurance.

Igloo is a regional player backed by many venture capitalists such as Open Space Ventures and InVent. The company rebranded in April of 2020 and secured $16 million USD in capital to help implement new growth and development in the insurtech game.

The already-established CXA Group has been offering insurance to consumers since 2013 and focuses on innovation in health insurance for companies. The award-winning company has operated under a “change is good” method, and so far, it appears to be paying off. Other players to watch out for in the ASEAN region include BIMA, PasarPolis, and Tune Protect.

With the face of insurance changing exponentially across the globe, insurtech in Thailand is already making strides to keep up to date with the latest advancements. Insurtech is helping bring in new consumers and increase profits for many companies. The way insurance startups tackle the new and improved industry will be the critical difference between staying strong or losing out, especially in a post-COVID world. Health and protection have never been more essential, and the personalisation and data-driven capabilities of insurtech are more than likely to throw traditional models to the wind.