The companies in this category, also called Insurtechs, take advantage of new technologies to provide coverage or to reinvent business systems in this digital era. While traditional insurance models cluster customers into risk categories, Insurtech start-ups are trying to use real data instead of statistical models to create smaller and more tailored risk categories. This makes it easier for them to offer a more competitive pricing strategy.

The UK Insurtech Bought by Many uses search and social media data to sell insurance and disrupt insurance distribution. For instance, it is the first UK pet insurer to offer online form-free claims. The company designed its policies using over 40,000 customers reviews and as a result, its insurance policies boast features that are new to the market. It could also avoid adding features that clients disliked about other policies.

Fintechs are also innovating on distribution by using new technologies such as apps to reach customers that are underserved by insurance. They are using products and platforms that are faster, more intuitive, and tailored to groups of individuals.

The Indian insurance aggregator Policy Bazaar provides information on life insurance, health insurance, P&C insurance, and serves as an insurance marketplace for individuals throughout India. It has been valued at more than USD2.5bn.

Other opportunities being sought in the Insurance market are claims handling, quoting capabilities and multi-platform brokerage.