In the era of fintech, insurtech also emerges, that is, insurance companies that transform their business into digital mode.
For now, the picture is not as simple as in the financial sector, although both point to digital inclusion. For the type of business and the regulations related to insurance, behind an insurtech there must be an insurance company.One of the firms that advances most decisively in this segment is Colón, which, through eColón, already offers coverage that can be hired through the web or the cell phone in just a few minutes, without moving from one side to the other or investing time in paperwork.
This is done through artificial intelligence, through Julieta Bot, the chatbot through which it is possible to take out insurance or obtain assistance, either on the company's website or on their Facebook page.
The implementation of these innovations allows the company to be 100% digital, so that the entire operation can be resolved electronically, beyond the possibility of human interaction, even to ask for advice or close a contract.
As is the case with fintech and banking, the insurtech are also called to grow the insurance market in Argentina, which is equivalent to 2.7% of GDP, against 3.5% average for the region, between 6 and 8% of the countries of the European Union and 9% of the United States.
Part of that expansion will depend on a greater adoption of the different existing coverages. The digital transformation of companies in the sector goes in that direction, since technology allows lower costs and enable more users to contract policies to democratize a service that still seems reserved to a small segment of the population.
An example illustrates the current panorama in a convincing way. In Argentina there are 6 million motorcycles in circulation. Although third-party insurance is mandatory, as is the case with automotive insurance, just over one million of these vehicles have the corresponding coverage.
Why does this happen? "Beyond that it is easy to answer that the Argentine does not like to comply with these demands, it should also be noted that it is not easy to take out motorcycle insurance, insurance producers and banks are not interested, because it is about amounts small ", explained to iProUP, Eduardo Iglesias, co-founder and CEO of eColón.
The company, which has almost a year and a half of existence, offers in this first stage insurance for the motorcycle and for the home, and will go ahead adding new segments, always with the aim of expanding the insurance base from the incorporation of various technological tools.It is a cross-platform model direct to the consumer, that is, the service is focused on the customer, who decides how he wants to interact with the company: whether through the web, via chatbot, or through the social network Facebook, where Julieta is also present Bot.
The virtual assistant is already equipped with artificial intelligence (AI) to interact with users through voice, an exclusive alternative when operating from a cell phone. And this option is fundamental: 85% of the insurance services that are hired in eColon are channeled through the mobile.
In the Facebook chat, Julieta communicates by text. And the insurance contracting process is streamlined, in this case, to the extent that the user completed their personal data in that social network.
Thus, when the assistant asks the customer for a telephone number, an email address or, even, the location via Google Maps to define the requested service quote, that information appears immediately if it is integrated.
If not, you must upload it manually. An example is the DNI, which can also be sent instantly, through a photo taken with the cell phone.
In any case, the contract is resolved in a few minutes. When paying, the system is integrated with the Mercado Pago platform.In the Facebook chat, the issued policy is sent and the circulation card will arrive by mail. If it is done via cell phone, this same documentation is sent to the email address.Automation and democratization
Iglesias explained to iProUP that this type of operation of eColón responds to one of the trends that govern the insurance industry, such as distributing the service directly. Added to this is automation, reflected in the incorporation of robotics in different areas, and then artificial intelligence.
"With eColón, we not only set trends in Argentina but also in the region," says Iglesias, a reference for dissertations in different parts of the world in which the subject of insurtech is addressed.
The executive emphasizes that the combination of technology in the operation plus the direct approach to users allows lower costs and, thus, reach a more massive population and democratize access to the insurance market. Mainly, through low-cost services, as explained with the example of motorcycles.The CEO of Colón points out that the demand for a better level of service - understood as quality, diversity, agility and security - will come from users and not from the offer, as Iglesias says, mistakenly consider traditional insurers.
Of course, the times of the insurers to advance in the digital transformation will be different from those of the fintech. The Superintendency of Insurance seems to contemplate this evolution and there are no barriers from the regulatory point of view that prevent it. The change is what the companies in the sector want to implement.
Wherever more transformation will be noticed in less time will be in the value chain of the insurance market through ventures that provide innovation in different instances of the behind the scenes of the business, the famous back office.
"There are going to be startups that do a process differently somewhere in the chain of the relationship with the company, and there are not many that are oriented towards insurtech," concluded Iglesias.It is another of the objectives promoted by an investment fund for this segment in which, apart from Colón, Banco Hipotecario y Binaria (OSDE) and which could add more companies in the short term. Precisely, to promote the digital transformation that must also reach the insurance market.Expanding market
Just as Colón is betting on the motorcycle segment, iúnigo, an insurtech that counts on the support of San Cristóbal is doing the same with the automotive market.
"The first thing is immediacy, we know that people value their time and that is why they can hire insurance in less than two minutes." The second is the digital experience, so we developed a proposal with the client in the center to do everything from the app, "says Federico Malek, CEO of the company, to iProUP.
The firm offers a faster quote by scanning the QR code of the green card or by entering only the patent. The user can also show a preview of your vehicle from your cell phone, without the need to go to a workshop or wait for an expert.
"We define ourselves as a technology company that has insurance services, we have 100 employees, of which half is dedicated to development and technology," explains Malek.
The momentum also reached the "traditional", as La Caja, which seeks to improve and simplify the experience of its customers.In this sense, Martín Centeno, manager of Digital Communication and Web, comments: "We noticed that, regardless of the insurance segment, the consumer has changed their way of interacting when making a purchase, a procedure or another service. deal with it in another way ".
Gonzalo Geijo, Commercial Director Latam of Charles Taylor InsureTech, tells iProUP that in order to adapt to this paradigm shift "it is extremely important that the traditional company propose a change of culture from its top management".
And he warns: "If this does not happen, it is very difficult for the organization to enter a world of innovation to face the new business paradigm".
Charles Taylor works regionally and globally with multiple insurers and brokers, such as Sura and AON.
And he sees a promising future: "Although the road is just beginning, in Argentina is growing in quantity of insurtechs and you can already see multiple teams that are coming to light with great ideas that are being adopted in the market."Progressively, the market sees the needs of users, as Malek sums it up: "Our client is digital, he is connected and he has to do everything from the app".