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InsurTech is composed of the words “insurance” and “technology”. It is used as a collective term for the application of modern technologies in the domain of insurance services.
Digital and mobile brokers: FinTechs belonging to this category mostly act as digital insurance brokers and provide users with an overview of their insurance contracts with their respective conditions. Some FinTechs offer very short-term insurance contracts to cover specific cases which can be concluded often spontaneously via mobile devices. Oftentimes additional consulting services are offered.
Internet of things: FinTechs belonging to this category collect data by measuring for example the driving style of the customers or through wearables the customers wear to consult on, offer and/or manage the customer’s insurances.
Introduction
Attitude of the country towards InsurTech-services
Currently, InsurTech is a rapidly developing sector with its largest growth being during 2017. The sector is divided amongst some of the most important companies that provide the underlying technologies and those who distribute them to insurance brokers within the market. They aim to compete with traditional brokers and although they are ever expanding, public perception tends to favour the more traditional brokers.
Legal affairs
Obligations and requirements to provide InsurTech-services
While InsurTech services are not subject to a standalone or sector-specific regulatory regime in Mexico, companies offering insurance products or acting as insurance intermediaries are still subject to the general regulatory framework applicable to the insurance sector. In particular, any entity that intends to offer insurance products in a habitual and professional manner—regardless of whether such services are offered digitally—must obtain an authorisation from the National Insurance and Bonding Commission (Comisión Nacional de Seguros y Fianzas, “CNSF”) to operate as an insurance institution. Likewise, entities or individuals that act as insurance agents (i.e., intermediaries) must also be authorised by the CNSF as “insurance agents” (agentes de seguros). Therefore, although the technology layer of InsurTech is not specifically regulated, the underlying insurance activity remains subject to strict licensing and compliance requirements under Mexican law
Additional comments regarding the legal situation for InsurTech-services or what InsurTech’s must be aware of in this business area
InsurTech is currently undergoing a massive capitalisation boom for which certain regulatory hurdles are expected. For more information on InsurTech developments, there is a Mexican InsurTech Civil Association which keeps an updated 'radar' which helps visualise key sector developments.
Economic conditions
Market size for InsurTech-services and biggest companies in this business area