We examine insurance app ideas that are worthwhile of funding in this piece. Consider it a manual for company founders, experienced businesspeople, or product managers.
7 InsurTech App Ideas Worth Investing In 2023
In this article, you can know about 7 InsurTech App Ideas Worth Investing In 2023 here are the details below;
We’ll think about:
The top insurance app ideas, data on venture capital investments into insurance ideas, and more. Why you should think about new app ideas in the InsurTech sector.
Let’s go into more detail about each topic.
Why Launch a New Insurance app to Market?
Because of an: Many startups collaborate with a mobile app development company to build an InsurTech application.
Expansion of the global industry
Startup companies focused on insurance have received venture capital investments, and utilization has increased.
Let’s talk about each of them.
Reason 1. Growth in the insurance sector
Owning an app is a risky but justifiable move, according to numerous growth figures from the InsurTech sector. Here are some:
The global InsurTech demand is expected to grow at a CAGR of 32.7% from 2021 to 2030;
The income projection for the InsurTech sector is predicted to grow from $5.48 billion in 2019 to $10.14 billion in 2025;
Premiums paid to insurance businesses exceeded $4.9 trillion in 2017;
The international InsurTech market for mobile phones is expected to grow at a CAGR of 12.6% from 2021 to 2028.
Growth in the insurance industry is illustrated in this image as being one of the factors for introducing a new insurance app.
Reason 2. Venture Capital Investments
According to the data below, many InsurTech companies are receiving funding, regardless of where they are based:
The VCs invested over $6 billion in US-based InsurTech startups in 2021;
The UK’s Marshmallow raised $85M on a $1.25B valuation in 2021;
China’s Waterdrop raised $230M for its crowdfunded, mutual aid InsurTech platform in 2020;
InsurTech attracted 10% of investment into FinTech in 2021;
Nigeria’s Reliance insurance startup raises $40M in 2022;
Brazil’s InsurTech 180° raises $31.4M in its Series A fundraising round.
This image illustrates the increase in venture capital investment, which is the second justification for the release of the new insurance app.
Reason 3: Usage Rate
Another justification for owning an InsurTech product is user desire. Here are some figures that support this assertion:
In just January 2021, the number of health insurance apps downloaded from mobile devices increased by 36%;
Over the previous three years, mobile application downloads of digital-only InsurTech platforms increased by 461%;
42% of Europe-based healthcare insurers have an efficient app;
Since 1992, there has been a rise in the proportion of American drivers who have a car insurance policy.
The three sets of data above demonstrate that the insurance technology market is expanding excessively, and venture capitalists are prepared to finance startups in this sector.
The quickness of using the app is the final justification for releasing a new insurance app, as shown in this image.
The finest insurance app ideas will now be reviewed.
7 Ideas for Insurtech Apps Worth Funding in 2023
These ideas overviews are the result of research on markets and trends, as well as input from venture capitalists.
For each app idea, you can discover a description, a demand analysis, key insights, and examples.
Let’s examine each of them more closely.
Idea 1. Make Insurance More Convenient and User Friendly
You might think that this concept is somewhat “trivial.” Maybe it is.
This does not alter the reality, though, that a user-friendly product is still superior to a simple product.
So let’s start there before moving on to more detailed topics.
Users can easily buy premiums, make monthly payments, terminate coverage, and use other in-app features while on the go with an intuitive InsurTech product.
The typical user ought to be able to understand what each button does and complete the intended task without assistance.
Let’s think about some vital information for developing an app with a user experience focus:
Factors to Think About Description
Demand An app’s user experience is essential to the platform’s success. Here are some figures to back that up:
If the app takes longer than three seconds to load, 53% of prospective users will uninstall it;
90% of users will abandon an app if the user experience is poor;
If your insurance policy is mobile-friendly, 67% of visitors are more inclined to buy it;
Customers won’t suggest a mobile app that offers a poor user experience 57% of the time.
Key Findings Your app’s main goal should be to meet the requirements of your target audience. Every UI component, function, and onboarding procedure should be tailored to their requirements.
Asking the following inquiries can help you determine their needs if you’re not sure what they are: Why ought they to utilize your app? What issue does your app address? To map your development workflow, use these responses.
Consider the applications for life insurance. People use it to guarantee loved ones’ financial stability after they pass away. This should be the focal point of your app experience to keep users pleased and interested.
The following generic UX enabling elements need to be present in your app:
An intuitive interface,
Gamification, claim tracking, a search tool, and chatbots.
A document library, an in-app broker’s calendar, and other useful elements ought to be included in insurance broker apps.
Make sure all smartphones can view your app.
Example Here are a few user-friendly apps: USAA, Liberty Mutual, Geico, and Pasarpolis.
A vehicle insurance app for delivery drivers is an additional excellent app concept to think about.
An illustration depicts a concept for an insurance app that aims to make insurance more accessible and clear.
Let’s go over what this involves.
Idea 2. Car Delivery Insurance
When using their cars for deliveries, drivers are covered by this insurance service against mishaps and unexpected losses. The coverage is only in effect while you are traveling between locations with the intention of making a transport. Here are some details about this concept. Factors to Think About Description
Demand The increase in demand for delivery services has served as the foundation for the development of in-car delivery insurance. Here are some business statistics:
- There are more than 1.3 million delivery drivers in the United States, and the employment of delivery driver workers is anticipated to increase by 12% between 2021 and 2030. Delivery drivers are required to have vehicle insurance as part of their job.
- Key Findings Combine AI automation and algorithms, motion sensors, and geolocation APIs to make a unique automobile insurance application.
- With the aid of these features, your app can evaluate driving habits and personalize premiums for each policyholder.
- For interstate deliveries, you can also provide advertisements for trip insurance policies.
- Example Zego and Progressive Insurance are two popular examples of vehicle delivery insurance apps.
- The illustration depicts a concept insurance app for vehicle delivery insurance.
Idea 3. P2P Insurance
P2P insurance, also known as social insurance, is a network of individuals who share risks and each contributes a certain amount of money to an insurance fund. The main ideas and illustrations of P2P insurance are provided below. Factors to Think About Description Demand Statistics from numerous groups show that there is a significant market readiness for P2P. Here are some:
- P2P insurance is expected to grow at a CAGR of 32.5% from 2020 to 2025 and is expected to reach a worldwide market value of over $63 billion by that time. According to a Statista study, about 50% of UK residents plan to use a P2P insurance app.
- Key Findings P2P insurance is a technological application of the mutual insurance paradigm, not a new idea.
- P2P insurance applications make it quicker and easier for customers to pay premiums.
- For instance, the P2P InsurTech platform Lemonade enables customers to obtain premium quotes in less than 3 minutes.
- You’ll need the following elements to build an insurance app:
- Digital wallet, push notification, recipient website, page for insurance companies, and electronic ID storage.
- Other functionality that fits the complexity of your concept can be added.
- Example Examples of P2P applications include:
- Pineapple and Friendsurance, yes.
- This image illustrates a concept for a P2P insurance smartphone application.
Idea 4. Microinsurance
Microinsurance entails providing low-income people with insurance premiums against a variety of perils in return for affordable premiums based on their income and risks.
- Here are some items to maintain in mind.
- Factors to Think About Description
- Demand These figures demonstrate that obtaining this insurance can be a wise choice:
The microinsurance market is anticipated to grow at a CAGR of 13.5% from 2022 to 2026. Experts anticipate that the insurance industry will be worth $111.8 billion in 2026, up from its current value of $79 billion. 500 million risks globally are covered by microinsurance plans, up from 139 million in 2009.
- Key Findings The idea of risk sharing serves as the cornerstone of microinsurance.
- It’s difficult to design a remedy using this theory. You must create specialized insurance plans that are appropriate for your target audience.
- You require the ability to gather data, perform analytics, and have a long-term marketing strategy. In order to effectively persuade prospective customers, you can also provide a free in-app consultation.
- For the best possible customer experience, it is ideal to combine this concept with P2P and other economical insurance models.
- Example Crop Insurance, Yas, IFE, and Cover link are typical instances of microinsurance applications.
- This image depicts a smartphone InsurTech app concept for microinsurance.
Idea 5. Blockchain-based insurance
Blockchain-based insurance platforms give coverage via InsurTech apps where claims submission, payment, and data security are automated on the blockchain network. Let me give you some clarification on this concept.
Description of the Relevant Factors Demand Similar to other industries, the demand for blockchain in insurance is very strong.
Here are some figures that demonstrate this:
- By 2023, blockchain in insurance technology will be valued more than $1.3 billion, up from just $60.4 million in 2018.
- In the next three years, blockchain adoption in the insurance industry is predicted to increase at a CAGR of 84.9%.
- Key Findings The insurance industry benefits from blockchain’s increased efficiency, openness, and security.
- Additionally, it does away with some of the ways insurance agents collect data.
- Distributed ledger technology (DLT) supports InsurTech platforms by enhancing cybersecurity procedures, accelerating payment processing, and streamlining the handling of insurance claims.
Utilizing a skilled software development firm is crucial because blockchain implementation is very technical. Example Typical applications in this market include: Crop insurance ISLEY The illustration depicts a concept for a blockchain-based insurance program.
Idea 6. Pay-as-you-go Insurance
It’s also referred to as pay-per-mile insurance. Insurance firms here charge by the mile or the hour of driving. Additionally, they demand very little payment from policyholders to cover against theft or damage when the vehicle is parked. At a prompt, users can modify or terminate the policy. Description of the Relevant Factors Demand Statistics show that there is a large demand for PAYG insurance services.
In emerging markets, PAYG has grown by more than 40% over the past four years. Only 6% of Americans have PAYG insurance, despite the fact that more than 50% are ready to embrace it. 88.5 million Americans use on-demand services.
Key Findings Telematics are used in this form of insurance to monitor driver behavior, and the level of risk is used to calculate premium costs. Due to the low premiums it provides, it is especially suited to low-income risk-free earners. Examples of PAYG insurtech applications include Marmalade, Cuvva, Zego, and insurethebox. Illustration depicts a smartphone application for insurance, or pay-as-you-go insurance.
Idea 7. Cybersecurity Insurance
An individual can buy a certain kind of coverage called cybersecurity insurance to lessen the judgment liability that comes with conducting business online. The person transfers some risks to the insurance service supplier by paying premiums by the deadline. Description of the Relevant Factors Demand Although cybercrime insurance is a relatively new InsurTech market, there has been a high level of demand for the service.
Here are some figures that demonstrate that:
- The value of the global cyber InsurTech market was $7.8 billion in 2020; forecasts indicate that it will be worth an estimated $20 billion in 2025; the cost of identity theft was estimated to be $56 billion in 2020.
- Adult Americans in the US are 66% acquainted with cyber insurance.
- Key Findings Every eight minutes, ransomware app. Prior to billing potential customers, it is crucial to app ropriately assess ransomware threats.
- The lack of data that insurers have to use to determine premiums and risk models is a significant problem with cyber insurance.
- Real-time data collection on cybersecurity risks has not received much attention in study.
- Other than the lead collection and analysis applications of technologies like IoT and AI,
- Example BitSight, Kovrr, elphasecure, and Cybercube are examples of effective systems to emulate.
- This image depicts a concept for a cybersecurity insurance insurance app.
Ready to Build your insurTech Product?
We’re fairly confident that you and your team will be ready to develop your product shortly now that you and your team have some InsurTech ideas to discuss.
The success of a new app concept does not, however, depend on whether it is available for Android, iOS, or a cross-platform solution.
Continue reading our guide to developing insurance apps to learn more about the steps involved, the difficulties faced, the expenses involved, and advice for launching a new product.
Leave a Reply