Insurtechs will start a revolution in the Brazilian insurance market
Life, health and motor will see significant growth.
The number of startups offering insurance related services in Brazil has tripled in the last three years.
In 2020, it is expected that those companies will lead a dramatic change in the way that insurance products are contracted in the country. The Brazilian insurance market, which has always been known for high levels of bureaucracy and formalities, is already witnessing a change in this regard and the prospects for the coming year in this area are encouraging.
Different from fintechs providing general financial services who are currently fighting for space with long established banks, insurtechs in Brazil do not aim to replace or compete with traditional insurers, but rather work together with them to facilitate negotiations and generate business.
As a result, next year we will see an increase in the overall number of policies issued in Brazil, triggered by the reduction in the amount of time required to purchase insurance and how easy it is to choose an insurance policy in the digital environment set up and developed by insurtechs. Huge growth will take place especially in lines of business contracted by individuals, such as life, health and auto insurance.
Read the rest of our insurance predictions here.