Member-only story
Insurtech and the opportunity in emerging markets (Part III)
In the ever-evolving landscape of finance and technology, one industry has been making waves by addressing a longstanding issue: the accessibility of insurance in emerging markets. Among the drivers of economic growth and development in emerging countries, insurance is often overlooked in favor of flashier sectors like technology or infrastructure. In fact, though, insurance is a behind-the-scenes factor driving growth at all levels of society, from family life to massive infrastructure projects to technology development.
Understanding the Challenge
Emerging markets, characterized by rapid economic growth and increasing urbanization, often face challenges in providing adequate insurance coverage to their populations. Factors such as regulatory barriers, lack of awareness, financial stability, and outdated distribution channels contribute to a significant gap in coverage.
The Power of Mobile Technology
One of the key drivers behind enabling insurance in emerging markets is the widespread adoption of mobile technology. In many emerging countries a large portion of the population owns smartphones, and Insurtech startups can capitalize on this connectivity to reach previously underserved communities.
