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.
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