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InsurTech is composed of the words “insurance” and “technology”. It is used as a collective term for the application of modern technologies in the domain of insurance services.
Digital and mobile brokers: FinTechs belonging to this category mostly act as digital insurance brokers and provide users with an overview of their insurance contracts with their respective conditions. Some FinTechs offer very short-term insurance contracts to cover specific cases which can be concluded often spontaneously via mobile devices. Oftentimes additional consulting services are offered.
Internet of things: FinTechs belonging to this category collect data by measuring for example the driving style of the customers or through wearables the customers wear to consult on, offer and/or manage the customer’s insurances.
Introduction
Attitude of the country towards InsurTech-services
InsurTech is an attractive segment which is showing good ratios of growth during the last years in Argentina. There are a total of 15 companies in Argentina within the InsurTech sector. It is expected that this sector continues growing considering that most InsurTech companies offer their services through mobile apps at a time where rates of adoption of smartphones and mobile subscriptions in Argentina keeps growing steadily.
Legal affairs
Obligations and requirements to provide InsurTech-services
Insurance and reinsurance business activities are regulated by Law 20,091 and its regulatory decree (“Reglamento General de la Actividad Aseguradora”). Insurance intermediaries/brokers are regulated under Law 22,400.
Depending on the insurance activity carried out, InsurTech companies need to obtain authorisation by the National Superintendence of Insurance (“Superintendencia de Seguros de la Nación”). In the event they carry out activities of insurance or reinsurance, they must obtain an authorisation to act as insurance or reinsurance companies. In case InsurTech companies act as insurance brokers or consultants, they must obtain an authorisation as “Sociedades de Productores Asesores de Seguros”. Most InsurTech companies in Argentina are online insurance brokers. This is the case for companies such as 123seguro, Comparaencasa or Iúnigo.
Additional comments regarding the legal situation for InsurTech-services or what InsurTech’s must be aware of in this business area
The insurance business is a highly regulated activity worldwide and Argentina is not an exception. In this sense, it is important to point out that insurance, reinsurance, and broker insurance companies are not only subject to the aforementioned laws regulating their specific activity but are also obliged parties (“Sujetos Obligados”) under Law 25,246 and, therefore, are obliged to comply with all applicable provisions regarding prevention of money laundering and financing of terrorism.
Economic conditions
Market size for InsurTech-services and biggest companies in this business area
Although InsurTech services are growing, this segment is still small, representing only 6% of the total companies within the Argentine FinTech sector. Notwithstanding this, the InsurTech segment has great opportunities to grow. Driven by the adoption of top tier technologies such as blockchain and machine learning, InsurTech companies can leverage from improved user experience to final clients.
Additional comments regarding the economic situation for InsurTech-services or what InsurTech’s must be aware of in this business area
N/A.