1. Describe what you do in a maximum of 50 words.

With my advisory boutique, Margaris Advisory, I provide fintech start-ups and financial institutions, such as banks and insurance companies, advice on fintech trends and strategic orientation. I am also hands-on in several fintech start-ups as a venture capitalist investor.

2. Please give your definition of insurtech.

My definition of insurtech (insurance technology) is very simple: a start-up or company that provides, through technology and innovation, a disruption to the insurance industry status quo. In the process, customers will be provided with cost-effective, efficient solutions, and a better, simpler user experience more suited to their current lifestyle. Insurance companies also benefit from the innovations that insurtech companies provide, which is evident in their acquisitions or investments in this space.

3. Start-ups vs incumbent: disruption or collaboration?

At this development stage of the fintech industry, I believe we will see that many fintech and insurtech start-ups will be better off collaborating with incumbents who have clients and money to support and strengthen their business model. That doesn’t mean that incumbents can lay back and wait until many start-ups disappear or ask to collaborate with them, as that would be, in the long run, a fatal mistake. Disruption is happening, but it will take time to be felt by the incumbents’ bottom line – however, it will happen and it will be huge.

4. Name the main challenges for insurtech start-ups.

Customer acquisition costs are a big issue, but they are a general issue for the whole fintech industry – at least for the ones that are in B2C (business to consumer). A more specific challenge will be the regulatory insurance environment that will make it much harder for insurtech start-ups to thrive, and much harder than it is for the general fintech industry, where regulators are more open to change.

5. When you judge an insurtech initiative, what are you looking for?

I judge the insurtech initiatives in the same way I look at fintech initiatives. I look at how passionate, experienced, and good the team is, and how well they execute. Furthermore, at the beginning of the evaluation process, I use a simple method that works for me. I look at how hard it is for me to understand the start-up’s business proposition, and how clear and real the benefits are for their customers. If we pass the initial phase, then I start deep digging in the business case.

6. One piece of advice for insurtech entrepreneurs. 

The old world is not all so bad and the insurtech (and fintech) entrepreneurs are well advised to combine technology and innovation with proven insurance (industry) experiences and business know-how. The result will be not as revolutionary, but customers, incumbents, and investors will adopt it faster.

7. How long until we’ll be able to see an actual material insurtech change on the insurance market?

I think we are still at the beginning of what is yet to come in the insurtech space. The fintechs in the banking industry are further ahead in their developments and people, and customers have a bigger awareness of their benefits. In the insurance industry, the consumer is just starting to look at the up-and-coming insurtech start-ups. Once the word spreads more widely about how the insurtech offerings bring savings and convenience to the customer, we will see an explosion in demand for their offerings. To sum it up here, I strongly believe that, with all the money chasing the opportunities in the insurance industry, we will see a broader acceptance by the public and industry, and many positive regulatory changes in the coming years.

There are exciting times indeed in fintech and insurtech, and a chance of a lifetime for the ones who dare to make a difference.

About the author

Spiros Margaris is a 50insurtech influencer and No. 1 Global Fintech Influencer by @Onalytica. He is founder of the advisory boutique MARGARIS ADVISORY, senior advisor and investor at DSER.de, Kapilendo.com, moneymeets.com and advisory board member at Werthstein.com. He is also a senior advisor to the Fintech Forum and has previous working experience in banking and money management (hedge fund).

Twitter: @spirosmargaris

Linkedin: https://www.linkedin.com/in/spiros-margaris-57b735b