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The rise of insurtech in Iran: how insurance startups continue to grow

December 6, 2021 - 12:35

The insurance industry has encountered a rapid progression with the development of technology. Insurtech, inspired by this technological growth, significantly influenced managing risks and the insurance market; but there is still much room for advancement. 

According to the undeniable impacts and offerings of insurtech, insurers are investing in insurtech technologies working internally to build new solutions and platforms.

While the insurtech business continues to expand, many countries are adapting to the recent changes and new firms are entering the market and creating a name for themselves. 

Recently it was stated that almost $7 billion global financings went to insurtech startups in 2020. Now, let's dive into how Iran managed to join the highly competitive atmosphere and how insurance startups like BimeBazar will change the future of insurance for customers. 

What Is Insurtech and Why Is It Important?

Generally speaking, insurance means the use of technology innovations implemented to improve the efficiency of the insurance industry.

Insurtech is a combination of insurance and technology that offers solutions to large insurance companies with less incentive to exploit, such as ultra-customized policies, social insurance, and creating new streams of data from internet-enabled devices to dynamically price plans according to observed behavior and market conditions. 

The importance of insurtech comes from the fact that it can empower the creation, distribution, and administration of the insurance industry. By employing innovative technology, insurtech helps large insurance firms explore better options outside traditional human efforts. 

Today, customers access their insurance needs with smart devices like mobile applications, auto-monitoring devices, and wearable technology, which are helping people to get insurance within only a few minutes. 

Imagine a sudden travel plan comes up, and the last thing one wants is to wade through a pile of policy documents when they should be getting ready. Insurtech can help with all the digital world requirements. 

Moreover, insurtech has helped insurance firms to become more efficient and simpler in underwriting, claims process, and asset management. All those are coming from investing in big data, Al, and IoT devices. 

Why Is Insurtech Blooming In Iran?

We are living in a digital world facing an information revolution that radically changes all aspects of our lives. 

Over the past few years, insurtechs have emerged in the insurance space, and since then, there have been various insurance startups in Iran joining the digital waves. 

Investments have grown in this sector, and many successful instrutech ventures moved beyond the expectation and found advanced financial aids.

Besides the US and the UK, Asian countries have been transforming into insurtech technology and are expected to be the fastest-growing region in the coming years. Therefore, insurtechs in Iran were successfully created and implemented. 

For ages, insurance has been sold as a push product by some agents in Iran. But thanks to insurtech, now people can buy insurance coverage by using a simple mobile application.

The great advantage of insurtech has led the industry to help establish insurtech startups in Iran that specialize in various insurance models and plans. One of the pioneers in this area is BimeBazar.  

BimeBazar started as a small insurance startup in Iran with the goal of allowing customers to search and compare insurance plans from the leading insurance companies.

By creating a partnership with the aces of the market, it was able to offer guaranteed reasonable prices, special consulting, customized customer service, and an easy process that can be done within a few minutes. 

Insurance startups in Iran like BimeBazar were one of the few reasons for the insurtech to bloom. In addition, with the global spread of CoronaVirus, the internet has become an excellent substitute for all the inevitable activities.

That is why the highest-funded category of insurtech was traced in 2020. The ease of process and pricing assured people that these startups are better than getting involved with huge paperwork. 

For instance, BimeBazar helped people by offering desirable insurance solutions like personalized online distribution, predictive underwriting, and more efficient claims management. 

Although insurance startups are a new concept to several consumer markets in Iran, companies like BimeBazar create public trust and encourage the crowd to use the digital era's facilities. 

Surprisingly, this has resulted in an increase in demand among risk investors to work with the insurtech startups in Iran. Also, the insurtech sector is seeing grand funding rounds across the world like never before. 

How Insurtechs in Iran Delivers New Options to Customers?

Using industry-leading technology, Insurance startups in Iran like BimeBazar helped people compare plans and save money when shopping for auto, personal, disaster, and property insurances.

Besides, business owners are provided with more insurance options and the ability to tailor coverage to meet their needs and requirements.

An online service like the BimeBazar application can deliver quotes and plans from several top local insurers, which would help ease the process for everyone looking for an insurance plan. 

Consequently, the insurtech sector has gained the following benefits including:

- Lowering the costs in customer acquisition

- Possibility of expanding the business without borders 

- Automated customer acquisition and improved user experience

- Offering products, services, contracts, and procedures online and remotely

- Increased security and fraud detection

- Complying with the important regulations of the industry 

How Insurtech Will Change the Future of Insurance in Iran?

Experts believe that Al and all its related technologies will have a seismic impact on every aspect of the insurance industry in Iran and globally. These changes and effects can be seen in distribution, underwriting, pricing, and claims.

Advanced technological changes have already affected the underwriting and distribution, the policy being priced, purchased, and delivered in real-time. Based on a universal examination of what insurance will look like in 2030, dramatic changes will occur across the insurance value chain. 


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