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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
Currently, InsurTech is a rapidly developing sector with its largest growth being during 2017. The sector is divided amongst some of the most important companies that provide the underlying technologies and those who distribute them to insurance brokers within the market. They aim to compete with traditional brokers and although they are ever expanding, public perception tends to favour the more traditional brokers.
Legal affairs
Obligations and requirements to provide InsurTech-services
Currently, InsurTech isn’t specifically regulated, however there have been some developments in the sector which could lead to a specific regulation once the sector reaches a certain level of growth. As a result, they are not exempt of regulation but rather comply with regular business requirements such as a capitalisation minimum, data privacy policies, clearance by certain offices etc.
Additional comments regarding the legal situation for InsurTech-services or what InsurTech’s must be aware of in this business area
InsurTech is currently undergoing a massive capitalisation boom for which certain regulatory hurdles are expected. For more information on InsurTech developments, there is a Mexican InsurTech Civil Association which keeps an updated “radar” which helps visualise key sector developments.
Economic conditions
Market size for InsurTech-services and biggest companies in this business area
The InsurTech sector is rapidly evolving with constant expansion. Currently, there are over 50 companies in the sector with AutoChilango, Click and Mutuus being some of the largest players. However, as the space continues to develop and expand there is an expectation of further change within the key players.
Additional comments regarding the economic situation for InsurTech-services or what InsurTech’s must be aware of in this business area
As the Mexican consumer shifts its preferences from traditional brokers to fully digitalised services and a new wave of insurance services, the sector expects a massive boom. However, since this preference change has not set in yet, the preference for a more traditional broker heavily limits the sector’s growth.