Rob Schumacher

Is the Insurtech Dream Fading? We've all seen the headlines: Wefox, a major German insurtech, on the brink of insolvency without a funding lifeline. This isn't an isolated incident. The once-booming insurtech sector is facing a reality check. Here's why some insurtechs are struggling: #Funding slowdown: Venture capital is drying up, with total insurtech investment dropping 50% in 2022 [BCG report on insurtech funding decline]. Investors are demanding proven business models and profitability, not just disruptive ideas. #Unsustainable growth strategies: Focusing solely on rapid customer acquisition with low premiums can lead to a house of cards. Insurtechs need to find the right balance between growth and financial sustainability. #Legacy giants fight back: Traditional insurers are waking up to the digital revolution. They're investing in technology and improving customer experiences, making it harder for pure-play insurtechs to stand out. So, is insurtech dead? Absolutely not! There's still massive potential for innovation in insurance. The key for insurtechs now is to: 🔸Demonstrate a clear path to profitability. 🔸Focus on solving real customer problems, not just offering the cheapest policy. 🔸Partner with established players to leverage their reach and expertise. 🔸The future of insurtech will belong to those who can adapt, innovate, and build sustainable businesses. What are your thoughts on the current state of insurtech? Let's discuss in the comments! #insurtech #innovation #financialservices #Funding #Challenges

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𝐒𝐰𝐢𝐬𝐬 𝐈𝐧𝐬𝐮𝐫𝐚𝐧𝐜𝐞 𝐢𝐧 𝟐𝟎𝟐𝟒: 𝐓𝐡𝐞 𝐃𝐢𝐠𝐢𝐭𝐚𝐥 𝐒𝐡𝐢𝐟𝐭 𝐚𝐧𝐝 𝐭𝐡𝐞 𝐀𝐈 𝐀𝐬𝐜𝐞𝐧𝐭 The insurance world is changing. Customers are going digital, AI is on the rise, and loyalty is being tested. Here are the key trends shaping the Swiss insurance landscape in 2024: 𝑻𝒉𝒆 𝑪𝒖𝒔𝒕𝒐𝒎𝒆𝒓 𝒊𝒔 𝑶𝒏𝒍𝒊𝒏𝒆: • 𝐃𝐢𝐠𝐢𝐭𝐚𝐥, 𝐧𝐨𝐭 𝐩𝐡𝐲𝐬𝐢𝐜𝐚𝐥: “The trend towards online behaviour is steady. Younger people and those living in urban areas in particular favour online channels throughout the customer journey. Offline channels play a key role when it comes to concluding and cancelling contracts.” • 𝐓𝐡𝐞 𝐛𝐞𝐬𝐭 𝐨𝐟 𝐛𝐨𝐭𝐡 𝐰𝐨𝐫𝐥𝐝𝐬: While online is king for information gathering, many still prefer face-to-face interactions for signing contracts or canceling policies. • 𝐏𝐫𝐢𝐜𝐞 𝐦𝐚𝐭𝐭𝐞𝐫𝐬: Premium hikes are making people think twice. Many are staying put for now, but a good chunk are actively looking for better deals. • 𝐊𝐞𝐞𝐩 𝐢𝐭 𝐝𝐢𝐠𝐢𝐭𝐚𝐥: Customers are increasingly open to hearing from their insurers online. Think emails, not just letters. 𝑨𝑰 𝒊𝒔 𝒕𝒉𝒆 𝑭𝒖𝒕𝒖𝒓𝒆: • 𝐓𝐫𝐚𝐧𝐬𝐩𝐚𝐫𝐞𝐧𝐜𝐲 𝐢𝐬 𝐤𝐞𝐲: People want to know when AI is being used. No hiding behind the curtain! • 𝐇𝐢𝐠𝐡 𝐡𝐨𝐩𝐞𝐬 𝐟𝐨𝐫 𝐀𝐈: Customers increasingly believe AI can make insurance processes smoother and easier. • 𝐀𝐈 𝐢𝐬 𝐞𝐯𝐞𝐫𝐲𝐰𝐡𝐞𝐫𝐞: Over half of people have used AI in some way, showing it's becoming mainstream. The Swiss insurance industry is at a crossroad. To succeed, insurers need to adapt to digital tools, be upfront about AI, and find new ways to keep customers happy.  The future is here, and it's time to step up. Source: Finken, D., Hofstetter, R., Hütte, I., Schneider, S., Schulz, M., & Schmidt, S. (2024). Swiss Insurance Monitor 2024. https://lnkd.in/eJ9N9x29 Verband Digitalversicherung Schweiz

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