Page 7 - Turkinsurance Digital Magazine

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Getting rapidly integrated into the speed of the digital
world via blockchain technology, customized insurance
products, robotics and artificial intelligence; insurance
market is now facing the wave of startups. Startups

will carry the companies that can catch their wave
into the future, not only with their products but also
through social media, their way of analysis and new
inventions. Companies failing to keep up with the digital

developments and startups will be fiercely challenged
in terms of sustainable profitability.

As a business model trend that emerged in the US and rapidly spread out
into the rest of the world, startup concept is lexically defined as “the term
used for newly established businesses that start from scratch, new beginning”.
Entrepreneurial ideas that are designed for rapid growth, that offer and use
technology, address large masses, deliver their services to users easily, ad-
dress consumer needs, have continuity and are open for constant development
are shortly called startups. Especially companies transforming themselves into
customer-oriented companies in the insurance market, are rapidly changing the
course of the market towards the future.

Digital developments that have recently gained incredible pace especially with
the blockchain technology, artificial intelligence and robotics, are taking hold
of and reshaping all sectors, insurance in particular. Companies that keep
away from technological developments and stick to their traditional strategies
are falling behind their competitors; as the remarkable change in customer
expectations based on the digitalization trend proves the significance and in-
dispensability of technology in today’s market.

Designed to provide services for the global world rather than local markets,
startups are of particular concern for all the companies and organizations
that are engaged in financial technologies. “Fintech Transformation” report
prepared in cooperation with Ernst and Young Turkey, the global audit and
advisory company, The Interbank Card Center (BKM), and FinTech İstanbul;
states that the popularity of insurtech services increased considerably in 2017
compared to 2015. The report lists money transfer and payment-oriented ser-
vices at the top; and notes social insurance products and wearable devices as
the existing innovations in the insurance market, while Internet of Things and
wearable devices are emphasized as the future innovations. The report states
that the number of people using one or more products via digital channels in in-
surance market was 24 in 2017, and that it will increase up to 55 in the future.