Does Fintech + Insurtech = BancInsurTech
It is surprising that while the two worlds of Fintech and Insurtech continue to explode, individually gaining billions of dollars of capital, there have been few, if any attempts to marry the Fintech and Insurtech worlds.
Many consider Insurtech a subset of Fintech but that does not change the fact that the solutions offered seem to develop separately; many having to do with banking ecommerce, loyalty, credit scoring, and lending on the Fintech side while Insurtech concentrates on P&C, Life and Health insurance. There are benefits to enhancing the customer experience of purchasing insurance through a financial institution; be it bank or credit union, if the two combine forces.
When I first started leading bank insurance divisions many years ago, I had a vision -- to change the industry by inventing new ways of distributing insurance more easily and less expensively to consumers given the wealth of information that banks have about their clients.
As the distribution of insurance through banks was in its infancy, we thought we would be able “tabula rasa” the distribution, be innovative and anticipate what the customer experience might look like. We decided that having total personalization and a holistic approach would be a step in the right direction. One of our first attempts was Elastic Band Bancassurance or Ebb. Ebb would allow the banking client, whether business or individual, to have on-demand life and P&C insurance exactly when they needed it, in the amount needed and only when desired. Ebb, of course, also refers to the flowing back of the tide from high to low water or the period in which this takes place, so we thought it an appropriate acronym for insurance that ebbs and flows based on changing circumstances.To read more, click here.
Financial Institutions Insurance and Investments; commentary, insights and research from Carmen Effron, an industry insider.