Greener Pastures Await

People around the world have been adapting to the new normal over the past year. The consequences of the pandemic run deep and may take years to rectify. Business sphere has been caught up right in the middle of this life-altering event. Different industries have suffered losses big beyond imagination. Nevertheless, financially speaking, there have been anomalous patterns too where some industries have weathered this storm of grand economic fallout with surprising amount of steadfastness, and Insurtech has witnessed one such pattern. Despite the economic implications of Covid-19 outbreak, the investment pool in the Insurtech industry has managed to maintain its growth.

However, this growth comes with a couple of catches. Firstly, Insurtech was able to close out 2020 with record revenue largely because of the collections made during the first half of the year, which were record-breaking as the investors poured in a whopping 2.2 billion across 67 Insurtech companies within the first half of the year. There is another element that skews the picture a little. Even though the industry was able to maintain its growth rate, it’s important to note that much of these investments were made in few selected organizations. This has prompted the other organizations to change their focus. As per several reports emerging from the Insurtech during the last few weeks, there has been strong indication towards the development of technology that facilitates cost-effective strategies, thus bringing in a higher rate of investment. The Insurtech standard business model coupled with cutting-edge technology promises to provide an adequate amount of incentive to the customer under current circumstances, making the industry an exciting destination for the investors. As we move forward, the pastures look greener for Insurtech, but there is a growing concern over the continuity of it. A sizeable concern can be observed amongst medium and small-sized companies about whether they can rely on this inflow of investment as there is a very good chance that it might just stop altogether once we are through to the other side of this pandemic. Nevertheless, the industry understands that it can use this opportunity to create valuable solutions for its customers, gather their trust, and build what could be a self-sustainable platform that will outlast any temporary factors.