I never thought much about insurance until I moved to Germany and discovered that if I lost my house keys, I would be required to replace a new front door key for every person in the building, which could cost thousands.
So like a good newcomer, I took out annual personal liability insurance (Privathaftpflichtversicherung). According to Jean-Charles Velge, co-founder at Belgian insurtech company, Qover, my real estate company missed a trick and could have offered insurance as part of their suite of various things I pay for.
Qover has developed embedded insurance orchestration, enabling companies to embed insurance as a native component of or add-on to their core product or service.
And since its founding in 2016 has gone on to raise $41.7 million in funding.
"Everyone needs insurance, it's fundamental. But insurance is so boring, it's the most boring stuff in the world. No one wakes up and thinks about it. So the way forward is integration into products and services where it's just there so you don't have to care about it."
While it's not the sexiest industry I get to write about, insurance has been home to a plethora of innovations in the last decade.
One of the biggest shifts, according to Velge, is the evolution from single-country insurance to digital Pan-European regulatory and legal infrastructure that equips companies to provide a single digital customer experience all over Europe.
Companies can easily cross-sell and upsell insurance to make an additional profit stream and elevate their product or service.
Qover offers insurance solutions to various sectors from banking to travel to ebike theft.
New mobility business models mean new insurtech offerings
In March, the company announced a partnership with some of the biggest mobility players, including NIO, car subscription platforms Stiilt and JustRent, Volta Trucks and electric smart moped manufacturer NIU.
Mobility is an area ripe for disruption as vehicles are data centres on wheels, and analytic insights can contribute to car health and maintenance.
Connected cars offer a massive opportunity for insurtech as they expand their autonomous capabilities through subscription-based add-ons by OEMs, delivered by over-the-air software updates. Cars of the future will be continuously upgraded through such updates.
This will have enormous consequences for car and accident insurance. As Velge notes, "however successfully vehicle automation evolves, we'll still have very expensive autonomous vehicles on the roads next to dumb cars for some time."
And this is before we even start thinking about generative AI will shake up insurtech. Velge is optimistic that change will be profound:
"AI will change every industry. In insurtech this could include claims handling, policies, the wording on the fraud detection. It will come from every angle and will change every back office in the world."
Lead image: Fly:D.