- The insurance industry is adapting to new technologies.
- InsurTech Radar in Mexico. Legal framework
- Auto insurance, vehicle validation
- Embedded Insurance, protection of the sales process
- Medical insurance, technology at the service of health
- Fraud and digital security, the challenge of the insurance industry.
Fintech economies continue to show accelerated growth, as is the case with the InsurTech sector, which refers to companies that implement technology in the insurance industry and arises from the conjunction of Insurance Technology -Insurance Technology- which increased by 79% the number of associated startups in Mexico.
Most of these startups are in the Life & Health and Auto & Mobility lines of business, according to the Radar InsurTech Mexico 2021 study presented by the InsurTech Association of Mexico. A sample of the benefits offered to users by the implementation of technology in the insurance contracting process.
Car insurance, is it reliable to hire online?
Nowadays, hiring insurance for your car in Mexico is not a complicated task, you just have to enter one of the many insurance marketplaces, make a quote and hire the one that best suits your needs.
Traditional online payment methods are accepted and there are even options to insure fleets within the reach of an app. But is it safe to buy online, and what extra cybersecurity measures do InsurTech companies offer? At least in the Auto and Mobility line of business there aren’t many, those typical of payment systems without extra validation.
That is why companies like ReconoSER ID, a Colombian startup recently arrived in Mexico, offer vehicle validation services. It is enough to scan a person’s driver’s license or vehicle registration card to cross-reference the information with the government’s vehicle registry database and obtain more specific data on the contracting party.
Extra security filters are never superfluous when it comes to providing trust to consumers, most of whom belong to a millennial generation accustomed to making payments and contracting services from a mobile device.
Some apps have paid attention to the after-sales service for claims attention by sending evidence through a video call, which reduces service times, and filters such as biometric validation with gesture mapping that allow InsurTech to authenticate the user’s identity and make the corresponding payments.
Embedded Insurance, el sethe pandemic insurance
Many sectors suffered digital attacks during the pandemic, especially e-commerce with a boom of marketplaces with people trying to move their products as possible without considering electronic frauds.
Therefore, the rise of Embedded Insurance has shown the most creativity in the insurance sector after guaranteeing a correct purchase process with support in both ways, buyer, and seller.
The pandemic itself has led many companies to offer this type of insurance embedded or added to the purchase process to ensure that your product or service is protected, for example in flight cancellations by health order, fraud attempts, theft, or loss of the product, in this way it is already insured from the sale to delivery at the consumer’s home. Embedded insurance is already in the everyday use of the population.
On-demand and customized health insurance
The boom in the line of business focused on health is evident in the Mexican InsurTech companies that provide customized solutions, on demand and with all kinds of technological solutions that allow consumers to always have personalized attention.
There are platforms that offer virtual appointments through videoconferencing, issuing prescriptions and even advanced consultations on health centers included in the insurance coverage contracted.
InsurTech has become a driving force in mental health insurance with advanced algorithms that detect people’s moods objectively with biosensors that allow emotions and mental states to be monitored.
The challenges of the InsurTech sector, point to digital security.
There are many benefits offered by InsurTech to consumers depending on the type of insurance they wish to take out. Customization or on-demand options lower premiums to the benefit of the consuming public.
The products are flexible, adapting to the circumstances and characteristics of each client. This provides confidence in the product; however, the risk of fraud is latent, and the Mexican legal framework still lacks a way to severely punish online crimes.
Biometric validation is the future of online transactions, a correct authentication with advanced facial recognition systems will allow InsurTech to grow the sector in an accelerated way with less risk of fraud that benefits Fintech and e-commerce.
By Alfredo Gutiérrez Bayardi
Bibliography
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