Thoughts on EM Insurtech

Wefox model is the most popular one - especially seeing them in SE Asia where penetration of insurtech is low

• 2 main distribution methods: 1) agents 2) embedded in fintechs / e commerce

Things to consider

• Local regulations

  • Some places have mandated lines of insurance or price tariffs or special licenses to obtain

• Agent method is super popular but agents are usually not loyal – make note of which are active vs inactive agents

  • A lot of emerging markets insurtech just poach agents which isn’t necessarily sustainable

• Do they have an actual moat because I think we can learn from US insurtech to not necessarily bet on the first players entering the market

  • Basic things like underwriting

  • Better technology platform

  • First mover is kinda a poor point

• “geographic expansion” is more difficult than usually pitched by international insurtechs

  • Must consider local regulations

  • Each geographic region has different consumer behavior

  • Local niche understanding is a lot harder to grasp

• Emerging economies likely to have more high volume low average premium policies that are more across e commerce like products like shoes, glasses, mobile, etc.

  • Keep an eye on CAC and churn both for policies and agents

• everything is growing fast when there is very little competition - fast growth is great but gotta look deeper

Nonetheless insurance penetration should and will rise – I support it a lot from a social impact POV

TL;DR: EM insurtech is a momentum play.