Insurtech Business Opportunities in Isreal
- According to Eyal Shvartz, the chief executive officer of one of Trusty CEO, an Isreal-based insurtech company, "there is a huge gap between consumers online level and demand, and the digitalization process within the industry."
- After two years of developing the Trusty platform in Israel, Mr. Shvartz claimed to have perceived fear in the industry from the new era coupled with a strong realization that online actions must be taken now in order not to lose future clients.
- This has created a breed of insurers who are reluctant to collaborate with insurtechs to grow the connectivity and content needed to provide the more sophisticated sales solutions for the insurance SMEs and also, new insurance products with attractive prices for insurance consumers.
- We have used the information provided by Trusty because the company has two years of experience in Israel and also has 4 employees placing it under the small & medium category.
Factors Affecting the Industry
- The insurance market in Israel is said to be fast-changing.
- Insurance consumers have become more sensitive to price and now prefer to search for insurance policies online.
- Brand loyalty is fast becoming history with the days when consumers agree to pay more for their “home” going extinct.
Due to this disruption in the market, the strong insurance companies and big agencies are investing heavily in online marketing and digitalization, leaving the small/medium businesses without the ability to fight for new clients online.
According to the source, "insurance SMEs have nothing to lose. If you will not play an active role in our platform you will not pay anything, but they will not gain new clients either."
Isreal Insuretech Industry Growth
- A recent report published by Israeli NGO Start-Up Nation Central shows that the number of InsurTech companies in Israel has grown by 50% since 2015.
- There are now 480 active InsurTech startups based here and many of them attract investments from major multinationals.
- According to an industry report by Modor Intelligence, "Israel is poised to become the global hub for insurtech innovation."
- In 2019, Fintech companies in Israel attracted $1.7 billion, with the number of deals at the average level of the past 5 years due to four of the largest deals over $100 million having been made.
- In the same year, 9 deals were made with a value of over $50 million, and overall fundraising amounted to $1.2 billion.
From our initial research, we were unable to find any information regarding the small & medium p&c (property and casualty) insurtech industry in Israel operating in the field of image recognition, nlp, and smart underwriting. This could be because of the niche nature of the industry. As a result, little or no research has been conducted in the field of image recognition, nlp, or smart underwriting specific to the small & medium scale business sector in the country.
Due to want of time, we were unable to perform a deep dive into the US and Europe markets. We advise you to select one or more of the below listed next steps to enable us to continue with the research at large.