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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
The local InsurTech industry is growing very fast. Recently, the local InsurTech company Betterfly completed its third round of capital, having valued itself at USD 1 billion, and has announced its expansion not only locally but also to other countries in the region.
Legal affairs
Obligations and requirements to provide InsurTech-services
Insurance brokerage is a regulated activity in Chile (as well as the granting of event short-term insurance contracts. Such activities are under strict oversight of the CMF).
Entities wishing to carry out the abovementioned activities shall fulfil certain specific requirements such as minimum capital and liquidity requirements, whereas entities that provide pure technology services or which structure their services in a particular manner may fall outside the scope of regulation. Accordingly, the feasibility and specific requirements of operating such a business in Chile should be analysed on a case-by-case basis.
However, the gathering of insurance-related information, the application of AI to such information and its offering to insurance companies can be carried out without other requirements besides complying with general regulations and data protection laws.
Additional comments regarding the legal situation for InsurTech-services or what InsurTech’s must be aware of in this business area
N/A.
Economic conditions
Market size for InsurTech-services and biggest companies in this business area
According to the study "Latam Insurtech Journey" by Digital Insurance Latam, there are 352 InsurTechs in the Latin American region, of which 41 are Chilean, with Chile being the second largest investor in the regional InsurTech industry.
Information regarding revenues and customers is not readily available.
Additional comments regarding the economic situation for InsurTech-services or what InsurTech’s must be aware of in this business area
N/A.