InsurTech History

Friendsurance was one of the original insurance start-ups. Berlin's start-up created peer-to-peer insurance in 2010. A small group that helped each other after a loss spawned the notion. Big insurance firms pay every claim, but fraud, bureaucracy, and marketing are expensive. Friendsurance is a P2P insurance concept that combines a smaller group into a larger insurance pool and gives a cash-back benefit for claim-free years.

Since 2013, insurers have demanded more innovation, digital technology, and disruption. AXA is one of the first corporations to commit to digital insurance. It opened a Silicon Valley lab and joined Facebook in 2014. People waited for Apple, Samsung, Facebook, Google, and Amazon to enter the market.

The tide came in, but no Tsunami. Google began comparing auto insurance in March 2015. A year later, the firm left. The industry was relieved to see no damage. Tech giants are the insurance industry's boogeyman.

With InsurTech still young, several start-ups are working with large insurance companies and raising millions from VC firms. According to a PwC analysis, 90% of insurers fear losing business to start-ups, and 70% say they've taken steps to tackle potential fintech opportunities or challenges.